INTRODUCTION
Rationale 3 1.2 Research objectives 5 1.3 Research questions 5 1.4 Research methodology 6 1.4.1 Secondary data
Everybody knows which type of intense feeling you can get from an evening out As costumer you can get totally relaxed and you only do the things you want to do. There is even a whole industry build on this type of entertainment feeling In the entertainment industry different types of amusement are offered, every moment of the day a person can do what he wants to, to enjoy this passionate feeling So, it does not matter if the feeling is caused by a romantic dinner, an evening in the theatre or watching a movie it is about feeling the emotions: fun, fear or excitement The purpose of the entertainment industry is to let the consumer experience an intense feeling In this paper the focus will be on the topic of need for entertainment combined together with the cinema market The cinema market is one the biggest markets in the entertainment industry and went through a change in consumer decision-making process
The last few decades many things changed in the home cinema technology, almost every person in Vietnam has a television in their living room with the possibilities to watch movies on a high quality level So the possibility exists that consumers do not go to the cinema any longer, to see the newest movie, in the best possible way One of the main topics of this paper will be the question, what the reasons for a consumer nowadays are to go to the cinema The part need for entertainment will play an important role in this paper By adding the existing academic literature to this phenomenon a model will be made that predicates the consumer decision making process inside the cinema market
Compared with countries with strong cinema as United States, South Korea,China the ratio of viewers on a population of 4, it means that a person can watch the movie 4 times per year While that figure is about 0.2 in Vietnam, Vietnam should be evaluated in the industry is very potential market.
This study focuses on customer perceptions toward service quality in the CGV cinema in Vietnam
Founded in 2005 by the investors Vietnam and overseas, Megastar has launched the first Megastar Cineplex in Hanoi in 2006 and then in the city in 2007. The company has been rapidly gaining on 50% of the market and currently is the system where the number of theaters and theater in Vietnam in 7 provinces with 13 Cineplex.
CJ CGV Group took over Megastar Group in 2011 and is currently implementing a comprehensive reform plan and elevates your home entertainment system The objective of CGV in Vietnam is maintaining the current market leader and become combinatorial movies, entertainment No.1 in Vietnam To accomplish this goal, the company said it will expand its network in Vietnam reached 28 cinemas this year and will increase to 35 cinemas in 2017 CGV has opened a unique concept about cinema with the idea of culture where the audience not only watch movies at international standards cinemas, but also can enjoy culinary diversity, buy products related to entertainment & culture, experience the CGV
CGV has plans to be a long-term contributor to the development of Vietnam’s cinema industry not only through the daily activities at the cinema, but also through CGV community-outreach programs: Movies for Everyone, Toto’s Filmmaking Class, Vietnam Film Festival in Korea, and YXineff
Besides, the trend that people go to the luxury cinema increases these years. CGV, the brand quite well known in the market, now has to face with the high competition because of launching of series luxury cinema
There have already been many researches interest in perceived service quality of customers the field of cinema or entertainment industry However, there were not any attempts have been made to measure service quality of cinema in Vietnam before So this limitation will become problems for CGV cinema in the way of developing and improve its competitiveness to adapt customers’s need Because of above reasons, I decide to choose the topic: “IMPROVING SERVICE QUALITY OF CGV CINEMA
IN VIETNAM” with the hope of finding solutions to help CGV cinema in particular and other cinema in general become more attractive in Vietnam service industry environment
The overall objectives of research is providing to the board of director of CGV the quality of service quality according to customer’s opinion and give recommendations to improve the efficiency of business operations.
The research followed those main objectives:
To criteria to measure service quality of CGV cinema.
To assess the service quality of CGV cinema.
To suggest results of research to enhance service quality of CGV cinema
CJ CGV Group took over Megastar Group in 2011 and is currently implementing a comprehensive reform plan and elevates your home entertainment system The objective of CGV in Vietnam is maintaining the current market leader and become combinatorial movies, entertainment No.1 in Vietnam However, based on the results of customers’ survey, there are some problems in implementation and quality management There is a gap between customer expectations and perceptions of cinema service Therefore, this study focuses to solve these problems to improve the quality of service of CGV These questions should be answered:
How is the service quality of CGV cinema?
How well does the service quality meet the customer’s satisfaction?
How to enhance service quality of CGV cinema?
On purpose to guarantee the quality and quantity for the research, following is the methods shall be applied for collecting data.
1.4.3 Author collected framework and models from textbook Besides, secondary data was collected mainly from the reviews of CGV cinema, collected from newspaper, internet, magazine, etc… to find out the actual feelings of customers in many aspects of service quality in CGV cinema after experienced.
Collect from two ways: in-dedpth interview and surey in the second quarter of
- In-depth interview: were implemented with managers of CGV about requirement of a good service quality to meet CGV’s objective and strategies They are Director, Cinema Manager, Assistant Cinema Manager (quality: 04 managers).
- Survey: The survey had the guidance based on the manager’s requirements and literature review (collected by author) for a good service quality The survey was used to CGV’s customers as following:
In term of guarantee the quality and quantity for the research, following is the methods shall be applied for collecting data.
To understand about CGV cinema customer perceptions of service quality, the empirical research was conducted using primary data The questionnaire was developed based on the extensive literature review It was divided into three parts. First, the respondents’ expectations regarding service quality cinema in general were measured The second part examined the respondents’ perceptions of CGV cinema ‘s service quality The third part of questionnaire consisted of demographic questions and in-depth interview to the manager of cinema The questionnaire was prepared Vietnamese These results will be the main information for the author to give out the
In-depth interview CGV’s managers
Current situation of service quality
Dimension to measure the customer service qualitysatisfacti ons findings of the research
A questionnaire was constructed based on an adapted SERVQUAL, The items to measure use in questionnaire defined by the author based on 5 dimensions of service qualities as the annex attached survey
Scope of research 8 1.6 Thesis structure 8
Research Object: The thesis focus on customer perceptions of service quality in CGV cinema in Vietnam.
Geographical Scope: customers who come to the cinemas to directly experience the service quality in 27 CGV cinemas in 11 provinces/cities of CGVin Vietnam.
Research timing: Secondary data: collected from 2012 - 2015
Primary data: collected in July – October 2015
The study has 4 chapters including the acknowledgement, Table of contents, list of table and figures, Abbreviation page, executive summary and the Appendices.
The thesis included four chapters:
Chapter 2: Theoretical background on service quality
Chapter 3: Current quality of service quality at CGV
Chapter 4: Solutions to improve service quality offor CGV Cinema in Vietnam
To understand about CGV cinema customer perceptions of service quality, the empirical research was conducted using primary data The questionnaire was developed based on the extensive literature review It was divided into three parts First, the respondents’ expectations regarding service quality cinema in general were measured The second part examined the respondents’ perceptions of CGV cinema ‘s service quality The third part of questionnaire consisted of demographic questions and in-depth interview to the manager of cinema The questionnaire was prepared Vietnamese These results will be the main information for the author to give out the findings of the research
A questionnaire was constructed based on an adapted SERQUAL, The items to measure use in questionnaire defined by the author based on 5 dimensions of service qualities as the annex attached survey
120 questionnaires were distributed in CGV cinema system The research was conducted only with customers who agreed to participate in the study Data were collected during a three-week period in July
All of questionnaires were sent directly and random to 120 different customers at many sectors: bankers, students, pupils, officers, …by way via email attach charge notice, Cinema theatre, social media 102 questionnaires were collected, equivalent 85%
The cinema’ staff helped to distribute a collect the survey sheets from the participating customers A convenience sampling method was utilized to collect data Questionnaires were distributed to the customers who were willing to participate in the research, after finishing the film.
THEORETICAL BACKGROUND ON SERVICE
Theory of service quality 10 1 Definition of service
Philip Kotler and Kevin Lane Keller (2006) define “a service” as “any act or performance that one party can offer to another that essentially intangible and does not result in the ownership of anything” and “its production may or may not be tied to a physical product”
There are four major attributes distinguishing between services from goods; they are intangibility, variability, and inseparability and perish ability.
- Intangibility of services indicates that services cannot be tested, measured before being sold, as they are performances and experience rather than objects.
- Variability of services vary amongst different providers, and even for the same provider, they are various towards different moments of time.
- Inseparability of services means that services are a series of process, where production and consumption cannot be totally separated This process also involves interactions between customers and service providers, thus front-line employees significantly impact on customers’ perceptions of service quality.
- Perishability of services indicates that services cannot be stored or saved for latter consumption or selling, therefore they are said to be perishable.
2.1.2 Customer expectations of service performance
Customer expectations are beliefs of an individual about service performance before they receives the actual service delivery (Zeithaml et al.,
2006, P 81) Before customers purchase a service, they have an expectation about service quality which quality, which is based on individual needs, past experiences, the advertisements of the restaurants, and recommendations (Lovelock & Wright: 1999, P 92; Mill, 2001, P.173).
Customer expectations are beliefs of an individual about service performance before they receives the actual service delivery (Zeithaml et al., 2006, P 81) Before customers purchase a service, they have an expectation about service quality which is based on individual needs, past experiences, the advertisements of the cinema, and recommendations (Lovelock & Wright: 1999, P 92; Mill, 2001, P.173).
There are two levels of expectation standards: “what a customer desire” (desired service) and “what a customer feel acceptable” (adequate service), and the different between desired level and the adequate service is the zone of tolerance (Zeithaml et al., 2006, P 86), see details in Figure 2.1.
Chart Figure 2.1 Levels of Customer expectations of service
Before customers purchase a service, they have an expectation about service quality which is based on individual needs, past experiences, the advertisements of the cinema, and recommendations (Lovelock & Wright: 1999, P 92; Mill, 2001, P.173) After customers visited a show or consumed the services, they compare what they expected to get with what they actually received (Lovelock & Wright: 1999, P 92; Mill, 2001, P 173)
There are two levels of expectation standards: “what a customer desire” (desired service) and “what a customer feel acceptable” (adequate service), and the different between desired level and the adequate service is the zone of tolerance (Zeithaml et al., 2006, P 86)
2.1.3 Customer Perceptions of service performance
Perception is an individual’s attitudes after they have received services (Reid & Bojanic, 2001, P 73) Customers perceive a service in both terms of the quality of service and satisfaction, and perceptions of customers always relate to their expectations and experiences (Zeithaml et al., 2006, P 106).
Customer satisfaction is linked to customer perception of value in terms of product quality, service quality, and competitive price (Naumann&Giel, 1995, P 5;Robert, 1993, P. 84; Zeithaml et al., 2006, P 110), as well as corporate image (Naumann&Giel, 1995, P.
218) Customer satisfaction occurs when a firm’s servicemeet or exceed customer expectations (Reid &Bojanic, 2001, P 39) In addition, satisfaction change over time and influenced by a variety of factors such as, moods ofcustomer, and opinions of family member, friends and coworkers (Zeithaml et al., 2006, P 110) Also, improving customer service is a critical task of management in aservice firm (Reid &Bojanic, 2001, P 45)
The success of a service firm comes from respect to service quality that lead to satisfaction of customers (Bateson, 1995, P 581) Service quality is an important factor in customer evaluation and determining customer satisfaction (Zeithaml et al.2006, P 116).
In evaluating service quality, it is a comparison of customer’s expectation with the actual performance of service, and the different between customer expectations and perceptions of service is the “customer gap” in which a firm needs to close that gap (Bateson, 1995, P 559; Zeithaml et al., 2006, P 33) Moreover, the expectations and perceptions of customers are dynamic and constantly change over the time, so a firm must be continuously examining any changes to make an improvement quickly (Palmer & Cole, 1995, P 152; Zeithaml et al., 2006, P 33). According to ISO 8402, the service quality can be considered “set of characteristics of an object, giving to the audience (customers) the ability to meet the requirements stated orr implicit” We can also undertand that service quality is customer satisfaction measured by thr difference between quality (A) lower than the quality achieved (B): the quality is exxcellent; If you expectd quality expected quality greater than the achieved quality: the quality is not guaranteed;
If the expected quality as the same the achieved quality: the quality is guaranteed.
Expectations of customers created from four sources:
In which four-power source upper, only company situates the fourth in the control.
2.2 Model to analyze service quality
A.Parasuraman developed the model Likely model SERVQUAL that developed by A.Parasuraman L is based on the expectations disconfirmation approach known as disconfirmation paradigm
Model can be used or adapted to measure service quality in variety of service settings Another advantages isare that it can be used for compare competitors and wide range of services including bank services, supermarkets, health care, utility companies, fast food, professional services, libraries, information systems and mobile telecom (Nguyen Thi Mai Trang, 2006; Hill, 1995; Cuthbet, 1996a, 1996b; Caruara & Money, 1997; Robinson, 1999; Oldfied & Baron, 2000; o’Neill & Palmer, 2001; Rakshit Negi, 2009)
The model of service quality, which they made, identifiles the gap between customer expectations and perceptions (see the chart below) Gap 5 is the product of gaps 1, 2, 3 and 4 If these four gaps, all of which are located below the line that seperates the customer from the company, are closed the gap 5 will close The gaps are as follows
Gap 1: is the gap between what the customer expects and what the company’s management thinks customers expect
Gap 2: is the gap that occurs when management fails to design service standards that meet customer expections.
Gap 3: occurs when the company’s service delivery systems – people, technology and processes – fail to deliver to the specified standard.
Gap 4: occurs when the company’s communications with customers promise a level of serice performance that people, technology and processes cannot deliver Gap 5: in the model shows customers’expectations are driven from four places: Customer’s personal needs Customers’past experiences, Word of mout, marketing communications from providers.
CURRENT QUALITY OF SERVICE QUALITY AT
Overview of CJ CGV 20 3.2 CGV’ services and its characteristic 22 3.2.1 Basic services
CJ CGV is a unit under CJ Group - one of the largest diversified economy groups of South Korea, which is present in 21 countries around the world Its headquarters located in Seoul which is currently the largest Cineplex in Korea with largest M/S about 50% and 7 consecutive years been recognized as best movie theaters brand by consumers It has opened a unique concept about cinema with the idea of cultureplex where the audience not only watch movies at international standards cinemas, but also can enjoy culinary diversity, buy products related to entertainment & culture, xperience the CGV “Beyond Movies” concept.
CGV has developed advanced cinema technology such as:
• 4DX: World’s First Five Senses Cinema Screen;
• ScreenX: first 270-degree movie theater in the world;
• Starium: World’s Biggest Screen Officially Recognized by Guinness.
CJ CGV has been present in many countries with developing film industries in the world, such as South Korea, the U.S and China In Vietnam, after acquiring a majority share in MegaStar Cineplex, CGV is the number 1 cinema brand with 13 movie theaters across the country.
Foundation, Development history and Achivements of Cj CGV:
1995: CGV started as Theater Business Team inside CJ CheilJedang
Golden Village and renamed the company to CJ CGV
12/2004: CGV became the first theater chain listed on the Korea Stock Exchange.
2004: CGV exceeded an aggregated total of 100 million viewers
2006: it opened eight sites in China and one in Los Angeles, and took over major cinema chain in Vietnam
2013: CGV had 101 million visitors within one year It become the fifth cinema company achieving this mark, joining Regal, AMC, Cinemark and Cinepolis.
Moreover, CGV is has recently been recognized by Anphabe and Nielsen Vietnam as the number 1 entertainment brand of 100 Best Workplaces in Vietnam
Korea’s top exhibitor CJ CGV, a subsidiary of the CJ Group, is increasing its focus on the Vietnamese market by introducing special CGV Arthouse screens in Hanoi and
Ho Chi Minh City locations The new screens will be dedicated to Korean and Vietnamese films and will be made available at discounted prices.
Already the top exhibitor in Vietnam, with 139 screens in 28 multiplexes, CGV, along with fellow Korean exhibitor Lotte Cinemas, control approximately 75% of the Vietnamese cinema market In addition, sister company CJ Entertainment has begun producing films directly for the local market, with their first four titles to be released by Spring of this year CJ aims to make 3-5 films a year in Vietnam, a country that produces approximately 15-20 films per annum.
Table 3.1 Annual earnings of Vietnamese sites (Wbn)
Note: Assumed US$/W of 1,080 Source: Company data, KDB Daewoo Securities Research
The Vietnamese film industry has been growing fast in recent years, with the box office receipts from 150 cinema screens increasing at around 20% per year.
Unill now, the position of staff in CGV cinema in Vietnam is limited, as below:
6 Senior Accountant (only in Daklak & Dalat)
3.2 CGV’ services and its characteristic
Cineplex international standards theater CGV are located in prime locations in the center and is now the rendezvous of stylish young people or families in major cities wishing they enjoyed the film or in the country and abroad CJ CGV’s service has 02 kinds: basic services and value added services
3.2.1 Basic services 3.2.1.1 Products - CGV Theaters focused primarily on film formats screening
2D graphics is an image built on computer graphics programs It coordinate system of coordinate axes, it reflects a flat graphic style 2D graphics without the participation or it has but very little of the typical 3D effects like lighting effects, reflections, shadows The images of the artists are shadows but it is drawn by hand or editing without the participation of the light source The most easily identifiable characteristic of 2D drawing program that cannot be rotated angles The next characteristic is that everything is entirely in 2D from the background, the foreground object to create a cartoon-like shape paper cut, everything from drawings on a plane.
Frame 3D & graphics 3D system is built on three-dimensional computer graphics (3 Dimentional), Contacts This network operator’s graphic 3D space is horizontally - vertical - depth creates a different world shapes the world of 2D flat. 3D graphics make the most of 3D effects such as drop shadows, afternoon light, and reflection, thanks to the light source system by drawing process images With 3D program we can capture multiple images at different angles from one 3D image.
In particular, CGV often show the following genres:
Action film: Usually involves confrontation between "the good" and "evil" with many fierce fight with their bare hands or weapons, fast-paced and high-level special effects.
Adventure Movie: Includes the adventurous journey contains many dangers or lucky, sometimes with mythological elements.
Mystery Movie: Usually the process of investigating a mysterious unexplored.Thriller film is often considered the most popular films in feature films,including the tale of criminal investigation, espionage, counter-intelligence, and military intelligence very attentive Movies give top priority to act rather than judgmental thinking inside the characters and storyline to be more active,efficient cause fierce screen, more physical, sometimes sacrificing movies females surprise appearance at the end of the story exciting to go into action in the struggle parallel or death between military and space detective.
Comedy film: Contains more humor so amusing for viewers
Horror Movie: Contains many elements of horror and gore to cause fear to the viewers
Fantasy film: context kg real, often involving supernatural phenomenon, imagine magic. Film is considered far from Horror genre or movies Science Fiction.
Drama film: Usually's focus on life or a stage in the life of the protagonist Fantasy film: Similar Recent science fiction movies when talking about things that do not exist in reality, the difference is that fiction is often based on legends or myths Romance film: Focus exploitation romantic love between the protagonists
CGV always more attractive incentive programs in order to attract customers, distribute discount card for popcorn and water combo section when customers buy more than two movie tickets.
"Lucky CGV" when customers come Cineplex CGV to enjoy movies, they will have the opportunity to meet "secret messenger" of the CGV in a "random" After participating in the trial, if the client passes, they will receive free movie tickets for any 2D movie Also, this interview will be posted on the CGV website with pictures of customers To official broadcasts free movie tickets with the singer, actor
Advertising program: In the brief leaflet movie content, the specific projector performance helped power easily select movies and appropriate time, Reward plastic cups, gift in "lucky calendar" for some special combo section.
To trailers civil events: advertising poster in the road movie has many passersby
The preparation of costumes, assigning tasks to specific employees CGVCinema attention and streamlined The uniform for staff are hugging black skirt,
Staff will contact considerate, welcoming customers and sell tickets to customers (online or offline); clients receive a ticket to want to buy in bulk; selling food and drinks to customers (Eg, popcorn, Pepsi, hotdog); ticket counter at the entrance, leading visitors into the right seats on the ticket.
Facilities: All theaters are beautifully designed, spacious, and in a unique style. All CGV cinemas of Vietnam are designed in the architectural style of Hollywood. They are Located in Plaza commercial area with complex models complete, Dolby surround sound system and curved screen by US standards The technical system of the theater is the professional advice of experts from Warner Bros.
Website or mobile application CGV designed very rich, easy to see and search for information about movies, ticket prices, movie content, genre, showtimes, can see the movie before the movie ticketing In addition, the CGV also allows you to book tickets online and get tickets before the movie.
Not so on the website/app also includes maps and directions theater furniture helps customers to choose the appropriate location and the space you want.
The environment: the cinemas are cleaned after each film was shown Space in cinematic movie theater and bar staff are careful hygiene, ensure environmental the fresh, cool.
Ticket booth: Arranged conspicuous place, professional space, spacious, without causing sudden yawn every time queuing to buy tickets on the holiday, creating comfort for customers when booking and purchasing tickets.
Attractive center of cinema is 3D screens in theaters with a capacity of more than
200 spectators Rooms are equipped with projection systems with superior slide projector systems using the latest technology in the world for sharp images and vivid sound. Besides huge projection screen, CGV Cinema is equipped with a series dedicated 3D glasses fashion will bring maximum comfort to the viewer.
The rooms of CGV 3D projection were based on the advice of the experts of
Warner Bros To increase the convenience for the audience, the 3D cinema of CGV will receive online bookings.
Dimension and attribute to measure quality of cinema service of
As the mentioned above, to assess service quality of CGV cinemas, 5 factors were indentified from the fundamental of service quality and from ideas of 4 CGV’s manager (withdraw from the in-depth interview) The detail of all factors to assess the service quality at CGV is indicated below:
Table 3.2 Quality factors for assessing the service quality of CGV
Employees are provided well-equipped with adequate facilities, especially the computer with advertising booking management software and review broadcasted program service;
The position and decoration of functional departments provide clients with impression of prestige and professionalism;
The employees should be well dressed and appear neat;
The website of CGV should be well designed, informative and easy to search information;
CGV will supply honest service to customer
CGV serves you in the time promised When CGV commitment to creat an friendly and satisfied environment The employee in CGV have understanding and knowledge
Service provider will meet the expectation of customers after watching films
Service provider will support customers in everytime and at everywhere
The number of employee in CGV is enough to adopt the needs Employees of CGV are always happy when implement their job Employees of CGV are always confident when implement their job
Customers feel secure in their transactions
CGV cinema will make to watch a film in theatre better than compared to watch it in home
Trailer showed in CGV will inspire the customers CGV always leads the new trend
The price in CGV will be accept The service of CGV will make customer feel that they are using luxury item The price in CGV will be competitive with the price of different entertainment Price of snack and extra food in CGV will be improved
Source: consulted from interviewing CGV’s manager
In response to the interview and survey that I sent out, I receive 04 versus
04 interviews as manager responded, 102 verus 120 customers This possibly brought about an account of 85%, especially, the percentage of responses of these customers are quite high, 102/120 customers did the survey, that means85% of CGV customers responded with the survey Therefore, the collected data is reliable
The next parts will indicate the specific information aabout the required lever of each factor that collected from customer’s surveys.
3.4 Analyzing service quality at CGV cinemas
3.4.1 The evaluation on Tangib ility factor dimension s le
When working with an organization or interprises, tangible elements are always factors that are concerned by customers first This also is a factor that makes the first impression to the customer, indicating the lack of professional or not of any organzation Therfore, this is the first factor affecting the service quality at CGV Tangibles factors are referred here include the following elements:
- Employees are provided well-equipped with adequate facilities, especially the computer with advertising booking management software and review broadcasted program service;
- The position and decoration of functional departments provide clients with impression of prestige and professionalism;
- The employees should be well dressed and appear neat;
- The website of CGV should be well designed, informative and easy to search information;
Following table shows statistics of customer expectations into tangible elements of CGV
Table 3.3: The expected tangibility factor dimensions of CGV
Employees are provided well-equipped with adequate facilities, especially the computer with advertising booking management software and review broadcasted program service;
2 The position and decoration of functional departments provide clients with impression of prestige and professionalism;
3 The employees should be well dressed and appear neat; 4.8
4 The website of CGV should be well designed, informative and easy to search information;
The table shows that there are differences between items in tangible dimension According to the survey, customers have high requirements on the appearance of CGV ‘s employees with customers’s expectation of this is very high at 4.8 points Likewise, customers’s expectation of designed, informative and easy to search informative website at 4.8 points When asked to make an assessment about designed, informative and easy to search informative website, CGV ‘s customer gave the mark for the website only at shown too much horrible film in the cinema and show them in nice time
Table 3.4: The perception of tangibility factor dimensions of CGV
Employees are provided well-equipped with adequate facilities, especially the computer with advertising booking management software and review broadcasted program service;
2 The position and decoration of functional departments provide clients with impression of prestige and professionalism; 4.2
3 The employees should be well dressed and appear neat; 4.0
4 The website of CGV should be well designed, informative and easy to search information; 4.3
The table shows that there are differences between items in tangible dimension According to the survey, customers have high requirements on the appearance of CGV ‘s employees with customers’s expectation of this is very high at 4.8 points Likewise, customers’s expectation of designed, informative and easy to search informative website at 4.8 points When asked to make an assessment about designed, informative and easy to search informative website, CGV ‘s customer gave the mark for the website only at shown too much horrible film in the cinema and show them in nice time
Staffs should be well eqquipped with adequate facilities, especially there appearance, in order to have impressed to clien’s need and be able to make differences with others Factors equipment for CGV’s employees at the time of survey is not appreaciated There is a big difference between he customer’s expectation and perception It also corresponds to the customer’s questions needs more quickly answers.
Staffs should be well eqquipped with adequate facilities, especially there appearance, in order to have impressed to clien’s need and be able to make differences with others Factors equipment for CGV’s employees at the time of survey is not appreaciated There is a big difference between he customer’s expectation and perception It also corresponds to the customer’s questions needs more quickly answers.
Chart 3.4: Gap between customer’s expectation and CGV’s performance in Tangibility dimension
3.4.2 The evaluation on Reliable factor dimensionReliable
Due to the requirements of the job, each employee in the sales is responsible following and solving the arising problem many great value transactions Thus, customers want CGV’s work forces are trustworthy, respectful of client information as well as in solving tasks and information between leadership and CGV’s customer.
Table 3.5: The expected reliability factor dimensions of CGV
1 CGV will supply honest service to customer 4.62
2 Serves customers in the time promised 4.73
32 The CGV cinemas meet the needs of custome after watching films; 4.85
43 When CGV commitment to creat an friendly and satisfied environment 4.90
54 The employee in CGV have understanding and knowledge 4.50
Reability elements are the factor that all employees in all fileds of business are required In CGV’s business operations, this is also an important factor According to the survey, approximately 94% ideas at good that CGV’s customers expectedCGV’s business professional can solve all requirements and problem at right deadline time and CGv’s employees should be have professional ethic
Table 3.6: The perception of reliability factor dimensions of CGV
1 CGV will supply honest service to customer 4.6
2 Serves customers in the time promised 4.5
32 The CGV cinemas meet the needs of custome after watching films; 4.5
43 When CGV commitment to creat an friendly and satisfied environment 4.7
54 The employee in CGV have understanding and knowledge 4.2
Reability elements are the factor that all employees in all fileds of business are required In CGV’s business operations, this is also an important factor According to the survey, approximately 94% ideas at good that CGV’s customers expected CGV’s business professional can solve all requirements and problem at right deadline time and CGv’s employees should be have professional ethic The element: meet the needs of custome after watching films have 4.7 point It is, however, this element has the biggest gap between expectation and perception of customer compared to the remaining Each employees of CGV follow and pay attention to the feedback of customer, holding important information of clients. When customers have trustworthiness for employees, and feel that their feedback will be recognized, they will be willing to continue using service.
Chart 3.5: Gap between customer’s expectation and CGV’s performance in Reliability dimension
Soucre: Author’s consultation Chart 3.5: Gap between customer’s expectation and CGV’s performance in
3.4.3 The evaluation on Responsible factor dimension
Responsible employee always is appreciated in any situation This is not only factor factoring that customers want but only the leaders of any which organization do, too.
The most factors that customers are interested in when using service ofCGV, CGV employees can answer and ready adopt with their customer needs.Due to many type of position in film box, the employee’s rotation policy makes many customer complaints Most customers expect CGV staff have better equipment and more information to answer customer’s questions, complaint quickly Ability to communicate well with customers is the essential requirement for any employee that working at CGV The communication skills of each employee show their professionalism and ability for handling the job.
Elements of the responses focused on the work of individual employees in the collective This factor showed the responsibilities of each employee in implementation work All elements of this factor dimensions have high expectation of customers, informs exactly when services will be provided and always willing to help have 4.8 point, employees are happy when implement their job has 4.9 point and enough to adopt the needs has 4.7 point.
The capacity of staff is an important factor to evaluate the quality of sales in CGV Because of the work required to impement many transactions with customers, CGV employees need to understand basic culture in public, especially in cinema.
3.4 Analyzing service quality at CGV cinemas 28 3.4.1 Tangible
The summary on findings of the current customer service quality at
3.5.1 The gap between the expectation and the perception of service quality at CGV
In conclusion, we can summarize the CGV customer’s expectation in this chart as following below:
Chart 3.9 10 : The expected servicer quality of CGV customer
To the above table, we can recognize that most expectation are 2 factors: tangibility and empathy The tangibility factors are evaluated at 4.73 points and the assuarance of CGV is scored at 4.78 points While the highest evaluation of customers perception is reliability and asuarance dimensions
Chart 3.101: The CGV customer’s perception of servicer quality
To the above table, we can recognize that most expectation are 2 factors: tangibility and empathy The tangibility factors are evaluated at 4.73 points and the assuarance of CGV is scored at 4.78 points While the highest evaluation of customers perception is reliability and asuarance dimensions
Through the results, we can see that CGV’s strength is modern facilities and luxury quality With our own professionsl invest, they build a good CGV image. Although CGV still must continue to improve their box, but CGV also had good state This factor should be even more promoted in the future to contribute the high quality of service in CGV
The element of responsiveness and assuarance are rated at moderate levels. These are factors that need to be adjusted to improve the quality of sales and supporting operation at CGV
The following chart shows the gap between the expectations and the perception that customer received from CGV’s services.
Chart 3.119: The gap between the expectation and the perception of service quality in CGV cinemas
The following chart shows the gap between the expectations and the perception that customer received from CGV’s services:
The chart showed there is no much gap between customer expectations and the current situation of the assuarance element The distance of the tangibility and empathy of CGV’s business professional’s factor are biggest, however they are the same just only at 0.6 points The distance of the asuarance element and the responsiveness at 0.33 points and 0.3 points in turn.
Slightly higher gap is realibility of CGV’s business professional factor which is at 0.22 points It suggests that the training activity of CGV is relatively good The tangibility and empathy are the widest gap with 0.6 points Thus, we can recognize that the customers expect improvement is in CGV working process
3.5.2 Existence and causes of the gaps between expectation and perception of service quality at CGV cinema
Although CGV’s work force always efforts to make good service quality, but there is still have some exist primarily and causes attached, it can be following below:
- Quality of film showed in the theatre is not satisfying all the expectations and needs of customers Although technology – driven screens in CGV as 4DX, IMAX was launched, most of customer go to CGV due to 2D and 3D films which showed mainly in the older screen It means that the quality of screening room has been assesed older than some competitors’ In the context of diversity options, the untimely upgrade quality screening room can lead to lost visitors Maybe, customers find to CGV to watch 4DX and IMAX while they go to Platinum, Lotte which that are launched after for 2D, 3D films The policy ofCGV is somewhat subjective when not keep comparing with competitors They have not still conduct a survey or research to find the own different about advantage and shortage in the market
- CGV is always proactive to show the newest film and blockbuster film compared to other screens This strong point extremely impact to taste of customers, especially those in need of pending blockbuster In fact, duration of horror film also attracts customer, it bring both profit and reputation to the company That’s reason why they show priority horror film in the nice schedule However, duration of horror film in CGV occupies too much to ensure the imagine of CGV which definites by “Culture, Great and Vital”.
- CGV cinema attracts mainly young customer who are willing to experience the new technology convenience for saving time and effort The computer utility or mobile utility of CGV seem to be the best way to sale items with this segment Clearly, social network, application mobile and website of CGV supply much benefit information to the customer These tool assist customer for planning to go outside, saving time to queu to buy tickets with many promotion It is, however, they have to faced small problem payment that they have to go early 30 minutes to pay by cash or credit card for finishing transaction Payment function of these convenience these conveniences has been frequently interrupted, low effectiveness It is difficult to payment through three tools above, even with the loyal group customers Investment sales and customer care system will be costly to manage and maintain Company has driven more investment in this system but the unt ill now, it has not been focused effective yet So reduction amount of transaction at each counter, it is necessary to invest in online system or increase number of counter.
- The volume of each screen volume of each screens about 40 – 60 customers If many films over together, the amount of people go to the elevator or go to the restroom too crowded to move Because all the the entire cinema are located in commercial centers or large mall in which design of elevators and restrooms are dependent in overall architecture This sometimes makes customer unsatisfy after watching films and coming back home.
- Due to the combination of CGV and partner like Alfresco, Pepperoni, Nestle, Commercial Bank, the service quality is influence of bureaucratic administration with multiple steps Currently, there are still some rules and procedures have not yet been reasonable that cause troubles for customers Sometimes, the problems is simple but they must contact several times, making a negative impact on the reputation of the cinema This problem is partly due to the role of personnel for implementation and monitoring mechanism of coordination is, leading to the transaction still stuck
- Although met numerous customers with luxury service but the CGV price factor including ticket and accompany food which still complain is expensive Since it provide superior service and the characteristics of the location, CGV cost input factor expensive, followed by the costly price of ticket and accompany food in cinema
Overall, the service quality of CGV has not met customer’s expectation In the trend of competition, CGV need to improve the quality of service to survive and win in competition market These standards will is the base that customers continue cooperating with CGV.
SOLUTION FOR CGV CINEMA
Solutions to improve service quality of CGV cinema in Vietnam 45 1 Solutions for tangible dimension
4.1 Oriented development on quality of CGV cinema in Vietnam 47 4.2 Solutions to imrove quality of CGV cinema in Vietnam 48 4.2.1 Solutions for tangible dimension: 49
CGV The Culture – Great – Vital Theatre
Cj CGV The group of entertainment and theatre
3D Film 3-D (three-dimensional) film or S3D (stereoscopic 3D) film is a motion picture that enhances the illusion of depth perception
4DX High-tech motion seats and special effects including wind, fog, lightning, bubbles, water, rain and scents
IMAX Image Maximum - a standardized recording and film screenings with higher resolution than standard films are generally used in the movie business
SPSS Statistical Package for Social Sciences
Chart 2.3: Measuring service quality using SERQUALSERVQUAL model 15
Chart 3.4: Gap between customer’s expectation and CGV’s performance in
Chart 3.5: Gap between customer’s expectation and CGV’s performance in
Chart 3.6: Gap between customer’s expectation and CGV’s performance in
Chart 3.7: The gap between the expectation and perception of assuarance factor dimensions of CGV 36
Chart 3.8: The gap between the expectation and perception of empathy factor dimensions of CGV 38
Chart 3.9: The gap between the expectation and the perception of service quality in CGV cinemas 40
Chart 3.10: The expected servicer quality of CGV customer 39
Chart 3.11: The CGV customer’s perception of servicer quality 39
Chart 2.1 Levels of Customer expectations of service 10
Chart 2.3 Measuring service quality using SERVQUAL model 16
Chart 3.4 Gap between customer’s expectation and CGV’s performance in
Tangibility dimension 33 Chart 3.5 Gap between customer’s expectation and CGV’s performance in
Reliability dimension 35Chart 3.6 Gap between customer’s expectation and CGV’s performance in
Reliability dimension 37 Chart 3.7 The gap between the expectation and perception of assuarance factor dimensions of CGV 39 Chart 3.8 The gap between the expectation and perception of empathy factor dimensions of CGV 41 Chart 3.9 The expected servicer quality of CGV customer 42
Chart 3.10 The CGV customer’s perception of servicer quality……… 42 Chart 3.11 The gap between the expectation and the perception of service quality in CGV cinemas 43
Table 3.1 Annual earnings of Vietnamese sites (Wbn) Error: Reference source not found Table 3.2 Quality factors for assessing the service quality of CGV Error:
Reference source not found Table 3.3 The expected tangibility factor dimensions of CGV Error:
Reference source not found Table 3.4 The perception of tangibility factor dimensions of CGV Error:
Reference source not found Table 3.5 The expected reliability factor dimension of CGVError: Reference source not found Table 3.6 The perception of reliability factor dimension of CGV 45
Table 3.9 The expected responsibility factor dimensions of CGV 47
Table 3.10 The perception of responsibility factor dimensions of CGV 47
Table 3.11 The expected assurance factor dimensions of CGV 50
Table 3.12 The perception of assurance factor dimensions of CGV 50
Table 3.13 The expected empathy factor dimensions of CGV 52
Table 3.14 The perception of empathy factor dimensions of CGV Error:
Table 3.1: Annual earnings of Vietnamese sites (Wbn) 31
Table 3.2: Quality factors for assessing the service quality of CGV 39
Table 3.3: The expected tangibility factor dimensions of CGV 40
Table 3.4: The perception of tangibility factor dimensions of CGV 41
Table 3.5: The expected reliability factor dimensions of CGV 44
Table 3.6: The perception of reliability factor dimensions of CGV 44
Table 3.9: The expected responsibility factor dimensions of CGV 47
Table 3.10: The perception of responsibility factor dimensions of CGV 47
Table 3.11: The expected assurance factor dimensions of 50
Table 3.12: The perception of assurance factor dimensions of CGV 51
Table 3.13: The expected empathy factor dimensions of CGV 53
Table 3.14: The perception of empathy factor dimensions of CGV 53
Service quality is one of important things for enterprises to survive and develop in competitive environment CGV is a leading cinema sector, established in
1990 so quality is very important for its existence and development perspective to meet: 3 targets – “Cultural, Great and Vital” Thus, it is necessary to determine the current status of quality of cinema service at 1980 since then propose solution to improve service quality here Moreover, there are not results of research on service quality of cinema at CGV Therefore, this study would like “Improving service quality in CGV in Vietnam” for finding quality service dimensions and solutions for improving quality of CGV cinema service at the leading cinema company.
Aims of this study are to (1) Discover the factors affecting service quality of CGV cinema Clarify dimensions to measure quality of cinema service at CGV; (2) Determine the current status of quality services of CGV and analyze the causes of the current status; (3) Offer solutions to improve service quality of CGV.
The thesis used sencondary data including information from the report, Internet, newspaper…and primary data collected form in terview and survey All of questionnaires were sent directly and random to 120 80 CGV ’s customers (when they visited to CGV cinema in big cities in Vietnam or they visited to CGV
‘s website, social network) 102 68 (85%) questionnaires were collected
With data collected analyzing, in this research, there are some results: For quality of cinema service assessing, most of dimensions and items have mean higher than 4/5 (means gaps between customers expectation and CGV’s performance are from 1 to 0) so quality of cinema at CGV is evaluated high and at the positive sides However, if CGV has quality oriented, it has to do many things to improve quality to satisfy customers.
In recommendations and conclusions, service quality dimensions at CGV are identified, including 5 dimensions: Tangible, Reliability, Responsiveness,Assurance and Empathy Although, each dimension has mean and median higher than 4/5, implies positive results, CGV should have clear strategy and detail plans to improve all of service quality dimensions for keeping quality oriented The most important thing is that there should be singleness of mind about service quality at CGV Based on this awareness, there should be each staff or each manager who in charge of quality assurance at each board and department to ensure service quality internally Moreover, there should be comprehensive measures to solve quality problems at CGV.The recommended solutions are focus on development business professional team, system receives customer’s feedback, implementation process, recruitment policy, training.
CGV is achieved many success so that managers and staffs could have be psychological to sleep still on win Thus, CGV have change to understand cinema and improve service quality And if CGV keeps quality oriented well, it will be successful in cinema market.
Everybody knows which type of intense feeling you can get from an evening out As costumer you can get totally relaxed and you only do the things you want to do. There is even a whole industry build on this type of entertainment feeling In the entertainment industry different types of amusement are offered, every moment of the day a person can do what he wants to, to enjoy this passionate feeling So, it does not matter if the feeling is caused by a romantic dinner, an evening in the theatre or watching a movie it is about feeling the emotions: fun, fear or excitement The purpose of the entertainment industry is to let the consumer experience an intense feeling In this paper the focus will be on the topic of need for entertainment combined together with the cinema market The cinema market is one the biggest markets in the entertainment industry and went through a change in consumer decision-making process
The last few decades many things changed in the home cinema technology, almost every person in Vietnam has a television in their living room with the possibilities to watch movies on a high quality level So the possibility exists that consumers do not go to the cinema any longer, to see the newest movie, in the best possible way One of the main topics of this paper will be the question, what the reasons for a consumer nowadays are to go to the cinema The part need for entertainment will play an important role in this paper By adding the existing academic literature to this phenomenon a model will be made that predicates the consumer decision making process inside the cinema market
Compared with countries with strong cinema as United States, South Korea,China the ratio of viewers on a population of 4, it means that a person can watch the movie 4 times per year While that figure is about 0.2 in Vietnam, Vietnam should be evaluated in the industry is very potential market.
This study focuses on customer perceptions toward service quality in the CGV cinema in Vietnam
Founded in 2005 by the investors Vietnam and overseas, Megastar has launched the first Megastar Cineplex in Hanoi in 2006 and then in the city in 2007. The company has been rapidly gaining on 50% of the market and currently is the system where the number of theaters and theater in Vietnam in 7 provinces with 13 Cineplex.
CJ CGV Group took over Megastar Group in 2011 and is currently implementing a comprehensive reform plan and elevates your home entertainment system The objective of CGV in Vietnam is maintaining the current market leader and become combinatorial movies, entertainment No.1 in Vietnam To accomplish this goal, the company said it will expand its network in Vietnam reached 28 cinemas this year and will increase to 35 cinemas in 2017 CGV has opened a unique concept about cinema with the idea of culture where the audience not only watch movies at international standards cinemas, but also can enjoy culinary diversity, buy products related to entertainment & culture, experience the CGV
CGV has plans to be a long-term contributor to the development of Vietnam’s cinema industry not only through the daily activities at the cinema, but also through CGV community-outreach programs: Movies for Everyone, Toto’s Filmmaking Class, Vietnam Film Festival in Korea, and YXineff
Besides, the trend that people go to the luxury cinema increases these years. CGV, the brand quite well known in the market, now has to face with the high competition because of launching of series luxury cinema
There have already been many researches interest in perceived service quality of customers the field of cinema or entertainment industry However, there were not any attempts have been made to measure service quality of cinema in Vietnam before So this limitation will become problems for CGV cinema in the way of developing and improve its competitiveness to adapt customers’s need Because of above reasons, I decide to choose the topic: “IMPROVING SERVICE QUALITY OF CGV CINEMA
IN VIETNAM” with the hope of finding solutions to help CGV cinema in particular and other cinema in general become more attractive in Vietnam service industry environment
INTRODUCTION 3
Research objectives
The overall objectives of research is providing to the board of director of CGV the quality of service quality according to customer’s opinion and give recommendations to improve the efficiency of business operations.
The research followed those main objectives:
To criteria to measure service quality of CGV cinema.
To assess the service quality of CGV cinema.
To suggest results of research to enhance service quality of CGV cinema.
Research questions
CJ CGV Group took over Megastar Group in 2011 and is currently implementing a comprehensive reform plan and elevates your home entertainment system The objective of CGV in Vietnam is maintaining the current market leader and become combinatorial movies, entertainment No.1 in Vietnam However, based on the results of customers’ survey, there are some problems in implementation and quality management There is a gap between customer expectations and perceptions of cinema service Therefore, this study focuses to solve these problems to improve the quality of service of CGV These questions should be answered:
How is the service quality of CGV cinema?
How well does the service quality meet the customer’s satisfaction?
How to enhance service quality of CGV cinema?
Research methodology
On purpose to guarantee the quality and quantity for the research, following is the methods shall be applied for collecting data.
1.4.3 Author collected framework and models from textbook Besides, secondary data was collected mainly from the reviews of CGV cinema, collected from newspaper, internet, magazine, etc… to find out the actual feelings of customers in many aspects of service quality in CGV cinema after experienced.
Collect from two ways: in-dedpth interview and surey in the second quarter of
- In-depth interview: were implemented with managers of CGV about requirement of a good service quality to meet CGV’s objective and strategies They are Director, Cinema Manager, Assistant Cinema Manager (quality: 04 managers).
- Survey: The survey had the guidance based on the manager’s requirements and literature review (collected by author) for a good service quality The survey was used to CGV’s customers as following:
In term of guarantee the quality and quantity for the research, following is the methods shall be applied for collecting data.
To understand about CGV cinema customer perceptions of service quality, the empirical research was conducted using primary data The questionnaire was developed based on the extensive literature review It was divided into three parts. First, the respondents’ expectations regarding service quality cinema in general were measured The second part examined the respondents’ perceptions of CGV cinema ‘s service quality The third part of questionnaire consisted of demographic questions and in-depth interview to the manager of cinema The questionnaire was prepared Vietnamese These results will be the main information for the author to give out the
In-depth interview CGV’s managers
Current situation of service quality
Dimension to measure the customer service qualitysatisfacti ons findings of the research
A questionnaire was constructed based on an adapted SERVQUAL, The items to measure use in questionnaire defined by the author based on 5 dimensions of service qualities as the annex attached survey
Author collected framework and models from textbook Besides, secondary data was collected mainly from the reviews of CGV cinema, collected from newspaper, internet, magazine, etc… to find out the actual feelings of customers in many aspects of service quality in CGV cinema after experienced
Collect from two ways: in-dedpth interview and surey in the second quarter of 2015
- In-depth interview: were implemented with managers of CGV about requirement of a good service quality to meet CGV’s objective and strategies They are Director, Cinema Manager and, Assistant Cinema Manager (quality: 04 managers)
- Survey: The survey had the guidance based on the manager’s requirements and literature review (collected by author) for a good service quality The survey was used to CGV’s customers as following:
+ Sampling methodology: convenience method was applied to select respondents Authors sent the questionaires table to customers through email and social network In this email, author suggested clients to respond within 1 week after receiving the email After 1 week, if the customers did not return the mail, author sent them again.
+ Characteristic of customers: most of these customers have been joining to the fan page of CGV and different cinemas, have experienced with going to the cinema They can give CGV’s service quality mark for each components as mentioned in the survey.
+ Question designing: questionnaire sent clients include 3 parts:
Part 1: A brief introduction about the purpose of the questionaires and commitment to the confidentiality of the information that customers provide.
The data was analyzed using SPSS Descriptive statistics were used to assess the cinema customer’s expectations, perceptions The paired sample t-test was performed to determine the significance of differences between perceived and expected scores of service quality The principal component analysis was conducted to reduce the defined service quality items into a set of simplified dimensions that should be emphasized in improving service delivery strategies
With all the information collected from interiews, surveys (using quantitive and qualitative measure methods to evaluate), Microsoft excell software was used by author to analyze the information.
Research Object: The thesis focus on customer perceptions of service quality in CGV cinema in Vietnam.
Geographical Scope: customers who come to the cinemas to directly experience the service quality in 27 CGV cinemas in 11 provinces/cities of CGVin Vietnam.
Research timing: Secondary data: collected from 2012 - 2015
Primary data: collected in July – October 2015
Thesis structure
The study has 4 chapters including the acknowledgement, Table of contents, list of table and figures, Abbreviation page, executive summary and the Appendices.
The thesis included four chapters:
Chapter 2: Theoretical background on service quality
Chapter 3: Current quality of service quality at CGV
Chapter 4: Solutions to improve service quality offor CGV Cinema in Vietnam
To understand about CGV cinema customer perceptions of service quality, the empirical research was conducted using primary data The questionnaire was developed based on the extensive literature review It was divided into three parts First, the respondents’ expectations regarding service quality cinema in general were measured The second part examined the respondents’ perceptions of CGV cinema ‘s service quality The third part of questionnaire consisted of demographic questions and in-depth interview to the manager of cinema The questionnaire was prepared Vietnamese These results will be the main information for the author to give out the findings of the research
A questionnaire was constructed based on an adapted SERQUAL, The items to measure use in questionnaire defined by the author based on 5 dimensions of service qualities as the annex attached survey
120 questionnaires were distributed in CGV cinema system The research was conducted only with customers who agreed to participate in the study Data were collected during a three-week period in July
All of questionnaires were sent directly and random to 120 different customers at many sectors: bankers, students, pupils, officers, …by way via email attach charge notice, Cinema theatre, social media 102 questionnaires were collected, equivalent 85%
The cinema’ staff helped to distribute a collect the survey sheets from the participating customers A convenience sampling method was utilized to collect data Questionnaires were distributed to the customers who were willing to participate in the research, after finishing the film.
Theory of service quality
Philip Kotler and Kevin Lane Keller (2006) define “a service” as “any act or performance that one party can offer to another that essentially intangible and does not result in the ownership of anything” and “its production may or may not be tied to a physical product”
There are four major attributes distinguishing between services from goods; they are intangibility, variability, and inseparability and perish ability.
- Intangibility of services indicates that services cannot be tested, measured before being sold, as they are performances and experience rather than objects.
- Variability of services vary amongst different providers, and even for the same provider, they are various towards different moments of time.
- Inseparability of services means that services are a series of process, where production and consumption cannot be totally separated This process also involves interactions between customers and service providers, thus front-line employees significantly impact on customers’ perceptions of service quality.
- Perishability of services indicates that services cannot be stored or saved for latter consumption or selling, therefore they are said to be perishable.
2.1.2 Customer expectations of service performance
Customer expectations are beliefs of an individual about service performance before they receives the actual service delivery (Zeithaml et al.,
2006, P 81) Before customers purchase a service, they have an expectation about service quality which quality, which is based on individual needs, past experiences, the advertisements of the restaurants, and recommendations (Lovelock & Wright: 1999, P 92; Mill, 2001, P.173).
Customer expectations are beliefs of an individual about service performance before they receives the actual service delivery (Zeithaml et al., 2006, P 81) Before customers purchase a service, they have an expectation about service quality which is based on individual needs, past experiences, the advertisements of the cinema, and recommendations (Lovelock & Wright: 1999, P 92; Mill, 2001, P.173).
There are two levels of expectation standards: “what a customer desire” (desired service) and “what a customer feel acceptable” (adequate service), and the different between desired level and the adequate service is the zone of tolerance (Zeithaml et al., 2006, P 86), see details in Figure 2.1.
Chart Figure 2.1 Levels of Customer expectations of service
Before customers purchase a service, they have an expectation about service quality which is based on individual needs, past experiences, the advertisements of the cinema, and recommendations (Lovelock & Wright: 1999, P 92; Mill, 2001, P.173) After customers visited a show or consumed the services, they compare what they expected to get with what they actually received (Lovelock & Wright: 1999, P 92; Mill, 2001, P 173)
There are two levels of expectation standards: “what a customer desire” (desired service) and “what a customer feel acceptable” (adequate service), and the different between desired level and the adequate service is the zone of tolerance (Zeithaml et al., 2006, P 86)
2.1.3 Customer Perceptions of service performance
Perception is an individual’s attitudes after they have received services (Reid & Bojanic, 2001, P 73) Customers perceive a service in both terms of the quality of service and satisfaction, and perceptions of customers always relate to their expectations and experiences (Zeithaml et al., 2006, P 106).
Customer satisfaction is linked to customer perception of value in terms of product quality, service quality, and competitive price (Naumann&Giel, 1995, P 5;Robert, 1993, P. 84; Zeithaml et al., 2006, P 110), as well as corporate image (Naumann&Giel, 1995, P.
218) Customer satisfaction occurs when a firm’s servicemeet or exceed customer expectations (Reid &Bojanic, 2001, P 39) In addition, satisfaction change over time and influenced by a variety of factors such as, moods ofcustomer, and opinions of family member, friends and coworkers (Zeithaml et al., 2006, P 110) Also, improving customer service is a critical task of management in aservice firm (Reid &Bojanic, 2001, P 45)
The success of a service firm comes from respect to service quality that lead to satisfaction of customers (Bateson, 1995, P 581) Service quality is an important factor in customer evaluation and determining customer satisfaction (Zeithaml et al.2006, P 116).
In evaluating service quality, it is a comparison of customer’s expectation with the actual performance of service, and the different between customer expectations and perceptions of service is the “customer gap” in which a firm needs to close that gap (Bateson, 1995, P 559; Zeithaml et al., 2006, P 33) Moreover, the expectations and perceptions of customers are dynamic and constantly change over the time, so a firm must be continuously examining any changes to make an improvement quickly (Palmer & Cole, 1995, P 152; Zeithaml et al., 2006, P 33). According to ISO 8402, the service quality can be considered “set of characteristics of an object, giving to the audience (customers) the ability to meet the requirements stated orr implicit” We can also undertand that service quality is customer satisfaction measured by thr difference between quality (A) lower than the quality achieved (B): the quality is exxcellent; If you expectd quality expected quality greater than the achieved quality: the quality is not guaranteed;
If the expected quality as the same the achieved quality: the quality is guaranteed.
Expectations of customers created from four sources:
In which four-power source upper, only company situates the fourth in the control.
2.2 Model to analyze service quality
A.Parasuraman developed the model Likely model SERVQUAL that developed by A.Parasuraman L is based on the expectations disconfirmation approach known as disconfirmation paradigm
Model can be used or adapted to measure service quality in variety of service settings Another advantages isare that it can be used for compare competitors and wide range of services including bank services, supermarkets, health care, utility companies, fast food, professional services, libraries, information systems and mobile telecom (Nguyen Thi Mai Trang, 2006; Hill, 1995; Cuthbet, 1996a, 1996b; Caruara & Money, 1997; Robinson, 1999; Oldfied & Baron, 2000; o’Neill & Palmer, 2001; Rakshit Negi, 2009)
The model of service quality, which they made, identifiles the gap between customer expectations and perceptions (see the chart below) Gap 5 is the product of gaps 1, 2, 3 and 4 If these four gaps, all of which are located below the line that seperates the customer from the company, are closed the gap 5 will close The gaps are as follows
Gap 1: is the gap between what the customer expects and what the company’s management thinks customers expect
Gap 2: is the gap that occurs when management fails to design service standards that meet customer expections.
Gap 3: occurs when the company’s service delivery systems – people, technology and processes – fail to deliver to the specified standard.
Gap 4: occurs when the company’s communications with customers promise a level of serice performance that people, technology and processes cannot deliver Gap 5: in the model shows customers’expectations are driven from four places: Customer’s personal needs Customers’past experiences, Word of mout, marketing communications from providers.
Dimensions of service quality
Due to not have the appearance of a physical product, cnsumers often rely on tangible evidence surrounding the information services in their assessments The visible elemets in the SERQUALSERVQUAL model comparison between consumer expectations and the ability of the company to product items These factors include a variety of items such as carpets, furniture, lighting, wall colors, brochures, everyday
Gap 5 correspondence, and the emergence of the company’s employees Thus, the component is visible in the two – dimensional SERQUALSERVQUAL – a focus on equipment and facilities, the other focusing on staff and communication materials.
The tangible component of SERQUAL SERVQUAL is obtained via four expectations (E1-E4) and four perception questions (P1-P4) Comparing the perception scores to expectations scores provides a numerical variable that indicates the tangible gap The smaller the number, the smaller the gap and the closer consumer perceptions are to their expectations The questions that related to the tangible dimension are as follows:
E1 Company should have up-to-date equipment
E2 The physical facility should be visual appealing
E3 Employees should be well dressed and appear neat
E4 The appearance of website of XYZCGV should be well designed, informative and easy to search information
P1 XYZ has up-to-date equipment
P2 XYZ’s physical facilities are visually appealing
P3 XYZ’s employees are well dressed and appear neat
P4 The appearance of website of XYZCGV is in keeping with the type of services provided.
In general, reliability reflects the consistency and reliability of the company’s performance There are companies that provide the same level of service time after time, or do not have significantly different quality for each delivery There are companies keep their commitments, keeping customer’s records correctly and fully, and perform services correctly time and time again.
When companies regret on their commitments with the clients they could lose more customers in the next transaction And of the course, if the company keeps the commitments in the agreements or contracts, providesign right time service, customers will continue to use the company’s services and entice more customers to use of the same service with them
Reability can be considered as the most important factor in five facors of SERVQUAL Hence, reliable service providing generally is essential job to create a success service company The questions used to assess the credibility gap as follows: The reliability expectation:
E5 When these firms promise to do something by a certain time, they will do so
E6 When these firms promise to serves you service, they will do it in the time promised
E7 When customers go to the cinema, they can experience the friendly and satisfy environment
E87 These employeeThese employees in XYZCGV should be understanding and knowledge
E98 Service provider should meet the expectation of customers after watching films The reliability perception:
P5 When XYZ promises to do something by a certain time, it does do
P6 When XYZ promises to serve the service in right time, it does so
P76 When customers go to the cinema, XYZ can experience the friendly and satisfy environment
P87 These employeeemployees in XYZCGV have understanding and knowledge
P98 XYZ meet the expectation of customers after watching films
- The ability to meet the needs of customer (environment, film quality)
Responsiveness means willingess to help customers and to provide prompt service, whilst capturing the notion of flexbility and the ability to customize the service to customers’needs Thus, the response size SERVQUAL concerns expressed in the willingness of clients to participate in the conversation with customers to understand customer needs Response also reflects the preparation of the firms providing the service Expectations and perceptions SERVQUAL items to solve the reaction distane as follows:
E10 Service provider should support customers in everytime and at everywhere
E11 The number of employee in XYZCGV should be enough to adopt the needs E12 Employees of XYZCGV are always happy when implement their job E13 Employees of XYZCGV are always confident when implement their job Responsiveness perceptions:
P10 XYZ will support customers in everytime and at everywhere
P11 The number of employee in CGV XYZ is enough to adopt the needs P12 Employees of XYZ are always happy when implement their job
P132 Employees of XYZ are always confident when implement their job The responsiveness dimension comprises:
- Ability to maitain good working relationship with clients and clients’ staff
- Responsiveness and accessibility of staff
Assurance means competence and courtesy of employees and therability to convey trust and confidence (This category includes the measure components:competence, courtesy, credibility and security) Competence relates to the firm’s knowledge and skill in performing its service Courtesy refers to how the firm’s personel interact with the customer and the customer’s possessions As such, courtesy reflects politeness, friendliness, and consideration for the customer’s property.
Security is also an important component of the assurance dimension Security reflects a customer’s feelings that he or she free from danger, risk and doubt In addition to physical danger, the security component of the assurance dimension also reflects finacial risk issues and confidentiality issues The SERQUALSERVQUAL items utilized to address the assurance gap are as follows:
E14 Customer should leads the new trend of firms
E15 Customer should be able to feel safe in their transactions with these firm’s employees
E16 XYZ should make to watch a film in theatre better than compared to watch it in home
E17 Trailer showed in XYZ will inspire the customers
P14 Customer can trust expect the new trend of XYZ
P15 Customer feels safe in their transactions with XYZ’s employees
P16 XYZ makes to watch a film in theatre better than compared to watch it in home
P17 Trailer showed in XYZ inspire the customers
More especially, this dimension comprises:
- Understanding operational and characteristics of clients
Empathy represents provision of caring, individualized attention to customers (includes access, communcation and price the customer).
E18 Employees of XYZ who should be sensitive to individual needs and wants, rather than always relying on policies and procedures
This price of film ticket should be suitable with customers
E19 The service of XYZ should make customer feel that they are using luxury item
E20 Employees who should be sympathetic and reassuring if something is wrong The price in CGV should be competitive with the price of different entertainment
E21 XYZ should Price to have customers’s best interest at heartsof snack and extra food in CGV should be improved
P18 XYZ gives customer sensitive to individual needs and wants, rather than always relying on policies and proceduressuitable price for ticket
P19 XYZ give customers the luxury service
P20 XYZ are sympathetic and reassuring if something is wrong‘s price in CGV should be competitive with the price of different entertainment
P21 XYZ has your best interests at heart
P22 XYZ has better price of snack and extra food in CGV
The cummunication dimension in customer care service advertising operation includes:
- Price Qand quality are suitable with most of customer
Factors impact on the service quality 21
Economy development is the primary factor impact saling; the economy is constantly evolving, living ’s standard is also increasing The entertaining channel from theatre has favoured the people of Vietnam Thus, they also need to attract diversified customers In addition, they should also focus on quality
Thanks to advertisement ordinance, the advertising agency had flexibility in arranging the placemet of spot and cut advertising in each screen It was make customers satisfied Hence, if the advertising laws in force, the implementation of advertising on screen and media will be managed more closely by the State
2.4.1.3 The trend of intergration and globalization
Intergration trend make entertainment through cinema is hotter It is also an opportunity for foreign companies producing and publish ing film Foreign companies will lead to Vietnam for many valuable lessons in developing strategies in the field of management, to develop better performance socialization process than old cinema in our country The trend of intergration and globalization also requires units always update information and the latest techniques to ensure that the information provided to customers as well aas have the facility for working with foreign clients.
2.4.2.1 Organization and management of CGV in Vietnam
The organization and management of CGV affects the time that programs can be showed Assign tasks and power of the office in the company needed clarity to the smooth coordination of internal processes This also affects he employee to complete the task and demonstrate the professionalism inderstanding the process and the steps to be taken to the contact with the customer is going well
2.4.2.2 Coordination of advertising issued units and related units
Coordination, adjustment and coordination, that are existing processes, create convenience for customers By coordinating , the process is flexible, minimizing execution time and procedures for customers, make customers be satisfied and desire to maintain cooperation.
Business professionals or people who work in CGV have an important role in creating an excellent sale operation Because all employees need to contact regularly with customers, each employee should be professional person when dealing with customers
Complete facilities, modern contribute to the provision of services of cinema and online saling system of rapid and convenient In this era of rapid development of technology, every customer will need to use these services minimize their time Consequently, the more modern and efficient technology facilitie, more customers are satisfied with the quality of CGV
CHAPTER 3 CURRENT QUALITY OF SERVICE QUALITY
AT CGV CINEMA IN VIETNAM
CJ CGV is a unit under CJ Group - one of the largest diversified economy groups of South Korea, which is present in 21 countries around the world Its headquarters located in Seoul which is currently the largest Cineplex in Korea with largest M/S about 50% and 7 consecutive years been recognized as best movie theaters brand by consumers It has opened a unique concept about cinema with the idea of cultureplex where the audience not only watch movies at international standards cinemas, but also can enjoy culinary diversity, buy products related to entertainment & culture, xperience the CGV “Beyond Movies” concept.
CGV has developed advanced cinema technology such as:
• 4DX: World’s First Five Senses Cinema Screen;
• ScreenX: first 270-degree movie theater in the world;
• Starium: World’s Biggest Screen Officially Recognized by Guinness.
CJ CGV has been present in many countries with developing film industries in the world, such as South Korea, the U.S and China In Vietnam, after acquiring a majority share in MegaStar Cineplex, CGV is the number 1 cinema brand with 13 movie theaters across the country.
Foundation, Development history and Achivements of Cj CGV:
1995: CGV started as Theater Business Team inside CJ CheilJedang
Golden Village and renamed the company to CJ CGV
12/2004: CGV became the first theater chain listed on the Korea Stock Exchange.
2004: CGV exceeded an aggregated total of 100 million viewers
2006: it opened eight sites in China and one in Los Angeles, and took over major cinema chain in Vietnam
2013: CGV had 101 million visitors within one year It become the fifth cinema company achieving this mark, joining Regal, AMC, Cinemark and Cinepolis.
Moreover, CGV is has recently been recognized by Anphabe and Nielsen Vietnam as the number 1 entertainment brand of 100 Best Workplaces in Vietnam
Korea’s top exhibitor CJ CGV, a subsidiary of the CJ Group, is increasing its focus on the Vietnamese market by introducing special CGV Arthouse screens in Hanoi and
Ho Chi Minh City locations The new screens will be dedicated to Korean and Vietnamese films and will be made available at discounted prices.
Already the top exhibitor in Vietnam, with 139 screens in 28 multiplexes, CGV, along with fellow Korean exhibitor Lotte Cinemas, control approximately 75% of the Vietnamese cinema market In addition, sister company CJ Entertainment has begun producing films directly for the local market, with their first four titles to be released by Spring of this year CJ aims to make 3-5 films a year in Vietnam, a country that produces approximately 15-20 films per annum.
Table 3.1 Annual earnings of Vietnamese sites (Wbn)
CURRENT QUALITY OF SERVICE QUALITY AT CGV
CGV’ services and its characteristic
Cineplex international standards theater CGV are located in prime locations in the center and is now the rendezvous of stylish young people or families in major cities wishing they enjoyed the film or in the country and abroad CJ CGV’s service has 02 kinds: basic services and value added services
3.2.1 Basic services 3.2.1.1 Products - CGV Theaters focused primarily on film formats screening
2D graphics is an image built on computer graphics programs It coordinate system of coordinate axes, it reflects a flat graphic style 2D graphics without the participation or it has but very little of the typical 3D effects like lighting effects, reflections, shadows The images of the artists are shadows but it is drawn by hand or editing without the participation of the light source The most easily identifiable characteristic of 2D drawing program that cannot be rotated angles The next characteristic is that everything is entirely in 2D from the background, the foreground object to create a cartoon-like shape paper cut, everything from drawings on a plane.
Frame 3D & graphics 3D system is built on three-dimensional computer graphics (3 Dimentional), Contacts This network operator’s graphic 3D space is horizontally - vertical - depth creates a different world shapes the world of 2D flat. 3D graphics make the most of 3D effects such as drop shadows, afternoon light, and reflection, thanks to the light source system by drawing process images With 3D program we can capture multiple images at different angles from one 3D image.
In particular, CGV often show the following genres:
Action film: Usually involves confrontation between "the good" and "evil" with many fierce fight with their bare hands or weapons, fast-paced and high-level special effects.
Adventure Movie: Includes the adventurous journey contains many dangers or lucky, sometimes with mythological elements.
Mystery Movie: Usually the process of investigating a mysterious unexplored.Thriller film is often considered the most popular films in feature films,including the tale of criminal investigation, espionage, counter-intelligence, and military intelligence very attentive Movies give top priority to act rather than judgmental thinking inside the characters and storyline to be more active,efficient cause fierce screen, more physical, sometimes sacrificing movies females surprise appearance at the end of the story exciting to go into action in the struggle parallel or death between military and space detective.
Comedy film: Contains more humor so amusing for viewers
Horror Movie: Contains many elements of horror and gore to cause fear to the viewers
Fantasy film: context kg real, often involving supernatural phenomenon, imagine magic. Film is considered far from Horror genre or movies Science Fiction.
Drama film: Usually's focus on life or a stage in the life of the protagonist Fantasy film: Similar Recent science fiction movies when talking about things that do not exist in reality, the difference is that fiction is often based on legends or myths Romance film: Focus exploitation romantic love between the protagonists
CGV always more attractive incentive programs in order to attract customers, distribute discount card for popcorn and water combo section when customers buy more than two movie tickets.
"Lucky CGV" when customers come Cineplex CGV to enjoy movies, they will have the opportunity to meet "secret messenger" of the CGV in a "random" After participating in the trial, if the client passes, they will receive free movie tickets for any 2D movie Also, this interview will be posted on the CGV website with pictures of customers To official broadcasts free movie tickets with the singer, actor
Advertising program: In the brief leaflet movie content, the specific projector performance helped power easily select movies and appropriate time, Reward plastic cups, gift in "lucky calendar" for some special combo section.
To trailers civil events: advertising poster in the road movie has many passersby
The preparation of costumes, assigning tasks to specific employees CGVCinema attention and streamlined The uniform for staff are hugging black skirt,
Staff will contact considerate, welcoming customers and sell tickets to customers (online or offline); clients receive a ticket to want to buy in bulk; selling food and drinks to customers (Eg, popcorn, Pepsi, hotdog); ticket counter at the entrance, leading visitors into the right seats on the ticket.
Facilities: All theaters are beautifully designed, spacious, and in a unique style. All CGV cinemas of Vietnam are designed in the architectural style of Hollywood. They are Located in Plaza commercial area with complex models complete, Dolby surround sound system and curved screen by US standards The technical system of the theater is the professional advice of experts from Warner Bros.
Website or mobile application CGV designed very rich, easy to see and search for information about movies, ticket prices, movie content, genre, showtimes, can see the movie before the movie ticketing In addition, the CGV also allows you to book tickets online and get tickets before the movie.
Not so on the website/app also includes maps and directions theater furniture helps customers to choose the appropriate location and the space you want.
The environment: the cinemas are cleaned after each film was shown Space in cinematic movie theater and bar staff are careful hygiene, ensure environmental the fresh, cool.
Ticket booth: Arranged conspicuous place, professional space, spacious, without causing sudden yawn every time queuing to buy tickets on the holiday, creating comfort for customers when booking and purchasing tickets.
Attractive center of cinema is 3D screens in theaters with a capacity of more than
200 spectators Rooms are equipped with projection systems with superior slide projector systems using the latest technology in the world for sharp images and vivid sound. Besides huge projection screen, CGV Cinema is equipped with a series dedicated 3D glasses fashion will bring maximum comfort to the viewer.
The rooms of CGV 3D projection were based on the advice of the experts of
Warner Bros To increase the convenience for the audience, the 3D cinema of CGV will receive online bookings.
Parking: When the customer to any point of the CGV movie, the first thing customers will easily find: large car park, located on the right when entering the campus theater, but sending cars long and laborious and not covered so if in midsummer sun will saddle fiery, but one advantage: the attitude of the staff dedicated to customer, except CGV Nguyen Trai, the customer must send the car in the alley and across the street into the theater
Book tickets: Customers refer films have been released on the website and can preview one clip of the film to the more convenient option Fares are also available on the website Customers can go to the theater to buy tickets in advance or more convenient via website or phone book and get tickets before showtimes While waiting to showtimes, customers can wait in a chair in the space near the ticket counter or in a country of cinema.
At the movies: After holding the ticket, customers can go to wait outside until the next movie showtimes First film projection screens is often late 5 – 10m awaiting guests in close enough to start the film, because, customers usually donot take late 1 minute of film that they wish to see.
Analyzing service quality at CGV cinemas
3.4.1 The evaluation on Tangib ility factor dimension s le
When working with an organization or interprises, tangible elements are always factors that are concerned by customers first This also is a factor that makes the first impression to the customer, indicating the lack of professional or not of any organzation Therfore, this is the first factor affecting the service quality at CGV Tangibles factors are referred here include the following elements:
- Employees are provided well-equipped with adequate facilities, especially the computer with advertising booking management software and review broadcasted program service;
- The position and decoration of functional departments provide clients with impression of prestige and professionalism;
- The employees should be well dressed and appear neat;
- The website of CGV should be well designed, informative and easy to search information;
Following table shows statistics of customer expectations into tangible elements of CGV
Table 3.3: The expected tangibility factor dimensions of CGV
Employees are provided well-equipped with adequate facilities, especially the computer with advertising booking management software and review broadcasted program service;
2 The position and decoration of functional departments provide clients with impression of prestige and professionalism;
3 The employees should be well dressed and appear neat; 4.8
4 The website of CGV should be well designed, informative and easy to search information;
The table shows that there are differences between items in tangible dimension According to the survey, customers have high requirements on the appearance of CGV ‘s employees with customers’s expectation of this is very high at 4.8 points Likewise, customers’s expectation of designed, informative and easy to search informative website at 4.8 points When asked to make an assessment about designed, informative and easy to search informative website, CGV ‘s customer gave the mark for the website only at shown too much horrible film in the cinema and show them in nice time
Table 3.4: The perception of tangibility factor dimensions of CGV
Employees are provided well-equipped with adequate facilities, especially the computer with advertising booking management software and review broadcasted program service;
2 The position and decoration of functional departments provide clients with impression of prestige and professionalism; 4.2
3 The employees should be well dressed and appear neat; 4.0
4 The website of CGV should be well designed, informative and easy to search information; 4.3
The table shows that there are differences between items in tangible dimension According to the survey, customers have high requirements on the appearance of CGV ‘s employees with customers’s expectation of this is very high at 4.8 points Likewise, customers’s expectation of designed, informative and easy to search informative website at 4.8 points When asked to make an assessment about designed, informative and easy to search informative website, CGV ‘s customer gave the mark for the website only at shown too much horrible film in the cinema and show them in nice time
Staffs should be well eqquipped with adequate facilities, especially there appearance, in order to have impressed to clien’s need and be able to make differences with others Factors equipment for CGV’s employees at the time of survey is not appreaciated There is a big difference between he customer’s expectation and perception It also corresponds to the customer’s questions needs more quickly answers.
Staffs should be well eqquipped with adequate facilities, especially there appearance, in order to have impressed to clien’s need and be able to make differences with others Factors equipment for CGV’s employees at the time of survey is not appreaciated There is a big difference between he customer’s expectation and perception It also corresponds to the customer’s questions needs more quickly answers.
Chart 3.4: Gap between customer’s expectation and CGV’s performance in Tangibility dimension
3.4.2 The evaluation on Reliable factor dimensionReliable
Due to the requirements of the job, each employee in the sales is responsible following and solving the arising problem many great value transactions Thus, customers want CGV’s work forces are trustworthy, respectful of client information as well as in solving tasks and information between leadership and CGV’s customer.
Table 3.5: The expected reliability factor dimensions of CGV
1 CGV will supply honest service to customer 4.62
2 Serves customers in the time promised 4.73
32 The CGV cinemas meet the needs of custome after watching films; 4.85
43 When CGV commitment to creat an friendly and satisfied environment 4.90
54 The employee in CGV have understanding and knowledge 4.50
Reability elements are the factor that all employees in all fileds of business are required In CGV’s business operations, this is also an important factor According to the survey, approximately 94% ideas at good that CGV’s customers expectedCGV’s business professional can solve all requirements and problem at right deadline time and CGv’s employees should be have professional ethic
Table 3.6: The perception of reliability factor dimensions of CGV
1 CGV will supply honest service to customer 4.6
2 Serves customers in the time promised 4.5
32 The CGV cinemas meet the needs of custome after watching films; 4.5
43 When CGV commitment to creat an friendly and satisfied environment 4.7
54 The employee in CGV have understanding and knowledge 4.2
Reability elements are the factor that all employees in all fileds of business are required In CGV’s business operations, this is also an important factor According to the survey, approximately 94% ideas at good that CGV’s customers expected CGV’s business professional can solve all requirements and problem at right deadline time and CGv’s employees should be have professional ethic The element: meet the needs of custome after watching films have 4.7 point It is, however, this element has the biggest gap between expectation and perception of customer compared to the remaining Each employees of CGV follow and pay attention to the feedback of customer, holding important information of clients. When customers have trustworthiness for employees, and feel that their feedback will be recognized, they will be willing to continue using service.
Chart 3.5: Gap between customer’s expectation and CGV’s performance in Reliability dimension
Soucre: Author’s consultation Chart 3.5: Gap between customer’s expectation and CGV’s performance in
3.4.3 The evaluation on Responsible factor dimension
Responsible employee always is appreciated in any situation This is not only factor factoring that customers want but only the leaders of any which organization do, too.
The most factors that customers are interested in when using service ofCGV, CGV employees can answer and ready adopt with their customer needs.Due to many type of position in film box, the employee’s rotation policy makes many customer complaints Most customers expect CGV staff have better equipment and more information to answer customer’s questions, complaint quickly Ability to communicate well with customers is the essential requirement for any employee that working at CGV The communication skills of each employee show their professionalism and ability for handling the job.
Elements of the responses focused on the work of individual employees in the collective This factor showed the responsibilities of each employee in implementation work All elements of this factor dimensions have high expectation of customers, informs exactly when services will be provided and always willing to help have 4.8 point, employees are happy when implement their job has 4.9 point and enough to adopt the needs has 4.7 point.
The capacity of staff is an important factor to evaluate the quality of sales in CGV Because of the work required to impement many transactions with customers, CGV employees need to understand basic culture in public, especially in cinema.
Due to large number of customer have to wait to buy the ticket or popcorn, customers have many questions for the number of employees and questions for capacity of supporting them everytime and at everywhere. Thus elements CGV support customers in everytime and at everywhere are only evaluated at 4.4 points.
Table 3.9: The expected responsibility factor dimensions of CGV
1 Service provider will support customers in everytime and at everywhere 4.80
2 The number of employee in CGV is enough to adopt the needs 4.70
3 Employees of CGV are always happy when implement their job 4.90
4 Employees of CGV are always confident when implement their job 4.50
The capacity of staff is an important factor to evaluate the quality of sales in CGV Because of the work required to impement many transactions with customers, CGV employees need to understand basic culture in public, especially in cinema
Table 3.10 : The perception of responsibility factor dimensions of CGV
1 Service provider will support customers in everytime and at 4.4 everywhere
2 The number of employee in CGV is enough to adopt the needs 4.4
3 Employees of CGV are always happy when implement their job 4.7
4 Employees of CGV are always confident when implement their job 4.2
Due to large number of customer have to wait to buy the ticket or popcorn,customers have many questions for the number of employees and questions for capacity of supporting them everytime and at everywhere Thus elements CGV support customers in everytime and at everywhere are only evaluated at 4.4 points.
Chart 3.6: Gap between customer’s expectation and CGV’s performance in Reliability dimension
Soucre: Author’s consultation 3.4.4 The evaluation on Assurance factor dimension s
Experiences in cinema are always the key factor is primary concern for business operating in the field of service provision Tetrad, the trend, the enviroment is also considered factors that creat the image, brand of CGV The same thought of almost customers is that they want to be inspired as soon as possible And of course, if everything goes on quickly and smoothie, customer would fell satisfied
The employees’s behavior instills confidence and how employees make customer feel secure in their transactions are at 4.9 points The new trend and the comparation element are expected at 4.8 points
The gap between the expectation and the perception of service quality at
In conclusion, we can summarize the CGV customer’s expectation in this chart as following below:
Chart 3.9 10 : The expected servicer quality of CGV customer
To the above table, we can recognize that most expectation are 2 factors: tangibility and empathy The tangibility factors are evaluated at 4.73 points and the assuarance of CGV is scored at 4.78 points While the highest evaluation of customers perception is reliability and asuarance dimensions
Chart 3.101: The CGV customer’s perception of servicer quality
To the above table, we can recognize that most expectation are 2 factors: tangibility and empathy The tangibility factors are evaluated at 4.73 points and the assuarance of CGV is scored at 4.78 points While the highest evaluation of customers perception is reliability and asuarance dimensions
Through the results, we can see that CGV’s strength is modern facilities and luxury quality With our own professionsl invest, they build a good CGV image. Although CGV still must continue to improve their box, but CGV also had good state This factor should be even more promoted in the future to contribute the high quality of service in CGV
The element of responsiveness and assuarance are rated at moderate levels. These are factors that need to be adjusted to improve the quality of sales and supporting operation at CGV
The following chart shows the gap between the expectations and the perception that customer received from CGV’s services.
Chart 3.119: The gap between the expectation and the perception of service quality in CGV cinemas
The following chart shows the gap between the expectations and the perception that customer received from CGV’s services:
The chart showed there is no much gap between customer expectations and the current situation of the assuarance element The distance of the tangibility and empathy of CGV’s business professional’s factor are biggest, however they are the same just only at 0.6 points The distance of the asuarance element and the responsiveness at 0.33 points and 0.3 points in turn.
Slightly higher gap is realibility of CGV’s business professional factor which is at 0.22 points It suggests that the training activity of CGV is relatively good The tangibility and empathy are the widest gap with 0.6 points Thus, we can recognize that the customers expect improvement is in CGV working process
3.5.2 Existence and causes of the gaps between expectation and perception of service quality at CGV cinema
Although CGV’s work force always efforts to make good service quality, but there is still have some exist primarily and causes attached, it can be following below:
- Quality of film showed in the theatre is not satisfying all the expectations and needs of customers Although technology – driven screens in CGV as 4DX, IMAX was launched, most of customer go to CGV due to 2D and 3D films which showed mainly in the older screen It means that the quality of screening room has been assesed older than some competitors’ In the context of diversity options, the untimely upgrade quality screening room can lead to lost visitors Maybe, customers find to CGV to watch 4DX and IMAX while they go to Platinum, Lotte which that are launched after for 2D, 3D films The policy ofCGV is somewhat subjective when not keep comparing with competitors They have not still conduct a survey or research to find the own different about advantage and shortage in the market
- CGV is always proactive to show the newest film and blockbuster film compared to other screens This strong point extremely impact to taste of customers, especially those in need of pending blockbuster In fact, duration of horror film also attracts customer, it bring both profit and reputation to the company That’s reason why they show priority horror film in the nice schedule However, duration of horror film in CGV occupies too much to ensure the imagine of CGV which definites by “Culture, Great and Vital”.
- CGV cinema attracts mainly young customer who are willing to experience the new technology convenience for saving time and effort The computer utility or mobile utility of CGV seem to be the best way to sale items with this segment Clearly, social network, application mobile and website of CGV supply much benefit information to the customer These tool assist customer for planning to go outside, saving time to queu to buy tickets with many promotion It is, however, they have to faced small problem payment that they have to go early 30 minutes to pay by cash or credit card for finishing transaction Payment function of these convenience these conveniences has been frequently interrupted, low effectiveness It is difficult to payment through three tools above, even with the loyal group customers Investment sales and customer care system will be costly to manage and maintain Company has driven more investment in this system but the unt ill now, it has not been focused effective yet So reduction amount of transaction at each counter, it is necessary to invest in online system or increase number of counter.
- The volume of each screen volume of each screens about 40 – 60 customers If many films over together, the amount of people go to the elevator or go to the restroom too crowded to move Because all the the entire cinema are located in commercial centers or large mall in which design of elevators and restrooms are dependent in overall architecture This sometimes makes customer unsatisfy after watching films and coming back home.
- Due to the combination of CGV and partner like Alfresco, Pepperoni, Nestle, Commercial Bank, the service quality is influence of bureaucratic administration with multiple steps Currently, there are still some rules and procedures have not yet been reasonable that cause troubles for customers Sometimes, the problems is simple but they must contact several times, making a negative impact on the reputation of the cinema This problem is partly due to the role of personnel for implementation and monitoring mechanism of coordination is, leading to the transaction still stuck
- Although met numerous customers with luxury service but the CGV price factor including ticket and accompany food which still complain is expensive Since it provide superior service and the characteristics of the location, CGV cost input factor expensive, followed by the costly price of ticket and accompany food in cinema
Overall, the service quality of CGV has not met customer’s expectation In the trend of competition, CGV need to improve the quality of service to survive and win in competition market These standards will is the base that customers continue cooperating with CGV
CHAPTER 4 – SOLUTIONS TO IMPROVE SERVICE QUALITY
OF FOR CGV CINEMA IN VIETNAM
4.1 Oriented development on quality of CGV cinema in Vietnam:
According to the service expert’s concern about the potentials of the fast- growing Vietnamese market, they are hoping to boosting their collaborations with local film producers and distributors.
In recent years, media giants from South Korea have rushed to accumulate bigger shares in the pie, trying to capitalize on the strong interest in Korean pop culture Profitability in the Vietnamese film industry jumped from US$13.3 million in 2009 to nearly $80 million in 2014, according to the Motion Picture Association of America.
Dong Won-kwak, CEO of CJ CGV, said Vietnam has a lot of room to grow, considering that its movie going rate is only 0.2 times a person a year, while in countries with big film industries each person goes to movie four times a year.
Research process
In term of guarantee the quality and quantity for the research, following is the methods shall be applied for collecting data.
To understand about CGV cinema customer perceptions of service quality, the empirical research was conducted using primary data The questionnaire was developed based on the extensive literature review It was divided into three parts. First, the respondents’ expectations regarding service quality cinema in general were measured The second part examined the respondents’ perceptions of CGV cinema ‘s service quality The third part of questionnaire consisted of demographic questions and in-depth interview to the manager of cinema The questionnaire was prepared Vietnamese These results will be the main information for the author to give out the
In-depth interview CGV’s managers
Current situation of service quality
Dimension to measure the customer service qualitysatisfacti ons findings of the research
A questionnaire was constructed based on an adapted SERVQUAL, The items to measure use in questionnaire defined by the author based on 5 dimensions of service qualities as the annex attached survey
Author collected framework and models from textbook Besides, secondary data was collected mainly from the reviews of CGV cinema, collected from newspaper, internet, magazine, etc… to find out the actual feelings of customers in many aspects of service quality in CGV cinema after experienced
Collect from two ways: in-dedpth interview and surey in the second quarter of 2015
- In-depth interview: were implemented with managers of CGV about requirement of a good service quality to meet CGV’s objective and strategies They are Director, Cinema Manager and, Assistant Cinema Manager (quality: 04 managers)
- Survey: The survey had the guidance based on the manager’s requirements and literature review (collected by author) for a good service quality The survey was used to CGV’s customers as following:
+ Sampling methodology: convenience method was applied to select respondents Authors sent the questionaires table to customers through email and social network In this email, author suggested clients to respond within 1 week after receiving the email After 1 week, if the customers did not return the mail, author sent them again.
+ Characteristic of customers: most of these customers have been joining to the fan page of CGV and different cinemas, have experienced with going to the cinema They can give CGV’s service quality mark for each components as mentioned in the survey.
+ Question designing: questionnaire sent clients include 3 parts:
Part 1: A brief introduction about the purpose of the questionaires and commitment to the confidentiality of the information that customers provide.
The data was analyzed using SPSS Descriptive statistics were used to assess the cinema customer’s expectations, perceptions The paired sample t-test was performed to determine the significance of differences between perceived and expected scores of service quality The principal component analysis was conducted to reduce the defined service quality items into a set of simplified dimensions that should be emphasized in improving service delivery strategies
With all the information collected from interiews, surveys (using quantitive and qualitative measure methods to evaluate), Microsoft excell software was used by author to analyze the information.
Research Object: The thesis focus on customer perceptions of service quality in CGV cinema in Vietnam.
Geographical Scope: customers who come to the cinemas to directly experience the service quality in 27 CGV cinemas in 11 provinces/cities of CGVin Vietnam.
Research timing: Secondary data: collected from 2012 - 2015
Primary data: collected in July – October 2015
The study has 4 chapters including the acknowledgement, Table of contents, list of table and figures, Abbreviation page, executive summary and the Appendices.
The thesis included four chapters:
Chapter 2: Theoretical background on service quality
Chapter 3: Current quality of service quality at CGV
Chapter 4: Solutions to improve service quality offor CGV Cinema in Vietnam
To understand about CGV cinema customer perceptions of service quality, the empirical research was conducted using primary data The questionnaire was developed based on the extensive literature review It was divided into three parts First, the respondents’ expectations regarding service quality cinema in general were measured The second part examined the respondents’ perceptions of CGV cinema ‘s service quality The third part of questionnaire consisted of demographic questions and in-depth interview to the manager of cinema The questionnaire was prepared Vietnamese These results will be the main information for the author to give out the findings of the research
A questionnaire was constructed based on an adapted SERQUAL, The items to measure use in questionnaire defined by the author based on 5 dimensions of service qualities as the annex attached survey
120 questionnaires were distributed in CGV cinema system The research was conducted only with customers who agreed to participate in the study Data were collected during a three-week period in July
All of questionnaires were sent directly and random to 120 different customers at many sectors: bankers, students, pupils, officers, …by way via email attach charge notice, Cinema theatre, social media 102 questionnaires were collected, equivalent 85%
The cinema’ staff helped to distribute a collect the survey sheets from the participating customers A convenience sampling method was utilized to collect data Questionnaires were distributed to the customers who were willing to participate in the research, after finishing the film
CHAPTER 2 THEORI E TI CAL BACKGROUND ON SERVICE
Philip Kotler and Kevin Lane Keller (2006) define “a service” as “any act or performance that one party can offer to another that essentially intangible and does not result in the ownership of anything” and “its production may or may not be tied to a physical product”
There are four major attributes distinguishing between services from goods; they are intangibility, variability, and inseparability and perish ability.
- Intangibility of services indicates that services cannot be tested, measured before being sold, as they are performances and experience rather than objects.
- Variability of services vary amongst different providers, and even for the same provider, they are various towards different moments of time.
- Inseparability of services means that services are a series of process, where production and consumption cannot be totally separated This process also involves interactions between customers and service providers, thus front-line employees significantly impact on customers’ perceptions of service quality.
- Perishability of services indicates that services cannot be stored or saved for latter consumption or selling, therefore they are said to be perishable.
2.1.2 Customer expectations of service performance
Customer expectations are beliefs of an individual about service performance before they receives the actual service delivery (Zeithaml et al.,
Parasuraman ‘s model 5 gaps
Source: http://www.serqualservqual.enstranky.cz/clanky/english/wahtisen.html
Source: http://www.serqual.enstranky.cz/clanky/english/wahtisen.html
- Tangibles involve appearance of psychical facilities, equipment, personeland personel and communication materials.
- Empathy represents provision of caring, individualized attention to customers (includes access, communication and understanding the customer).
- Resposiveness means willingess to help customers and to provide prompt service, whilts capturing the notion of flexibility and the ability to customize the service to customer needs.
The relative importance of these variables is also measured This enables you to compute the relative importance of any gaps between expectation and perceptions Management can then focus on straegies and tactics to close the important gaps.
This method could be used for internal marketing It is based on the idea that every individual in an organization, particularly a service organization, should recognize that they have customers to seve There is a positive link between internal service quality and external service quality and hence customer satisfaction, customer loyalty and the profitability of the organization Market research can be adopted for use with employees Personel can be given the opportunity to give feedback to management about working conditions, company policy in general and workers’own understanding about what comprises quality for th customer The relationship between organizational subunits and their relationship to top management are also important. This can be assesed by a variation of the SERVQUAL instrument
SERVQUAL represents service quality as the discrepancy between a customer’s expectation for a service offering and the customer’s perceptions of the service received, requiring respondents to anserw the questions about both their expectations and their perceptions The uses of perceive as apposed to actual service received makes the SERQUALSERVQUAL measure an attitude measure that is related to, but not the same as, satisfaction The difference between expectations and perceptions is called the gap which is the determinant of customer’s perception of service quality as shown on below:
The expectations of customers are subject to external factors, which are under the control of the service provider as shown on the diagram The gap on the diagram represents the difference between customer’s expectations and customer’s perceptions which is referred to as the perceive service quality (Kumar et al., 2009).This study focuses on this gap, the difference between CGV customers’ expectations and perceptions of service
Measuring service quality using SERQUALSERVQUAL model
Source: A.Parasuraman, Leonard L.berry and Valerie A.Zeithaml, 1988
Due to not have the appearance of a physical product, cnsumers often rely on tangible evidence surrounding the information services in their assessments The visible elemets in the SERQUALSERVQUAL model comparison between consumer expectations and the ability of the company to product items These factors include a variety of items such as carpets, furniture, lighting, wall colors, brochures, everyday
Gap 5 correspondence, and the emergence of the company’s employees Thus, the component is visible in the two – dimensional SERQUALSERVQUAL – a focus on equipment and facilities, the other focusing on staff and communication materials.
The tangible component of SERQUAL SERVQUAL is obtained via four expectations (E1-E4) and four perception questions (P1-P4) Comparing the perception scores to expectations scores provides a numerical variable that indicates the tangible gap The smaller the number, the smaller the gap and the closer consumer perceptions are to their expectations The questions that related to the tangible dimension are as follows:
E1 Company should have up-to-date equipment
E2 The physical facility should be visual appealing
E3 Employees should be well dressed and appear neat
E4 The appearance of website of XYZCGV should be well designed, informative and easy to search information
P1 XYZ has up-to-date equipment
P2 XYZ’s physical facilities are visually appealing
P3 XYZ’s employees are well dressed and appear neat
P4 The appearance of website of XYZCGV is in keeping with the type of services provided.
In general, reliability reflects the consistency and reliability of the company’s performance There are companies that provide the same level of service time after time, or do not have significantly different quality for each delivery There are companies keep their commitments, keeping customer’s records correctly and fully, and perform services correctly time and time again.
When companies regret on their commitments with the clients they could lose more customers in the next transaction And of the course, if the company keeps the commitments in the agreements or contracts, providesign right time service, customers will continue to use the company’s services and entice more customers to use of the same service with them
Reability can be considered as the most important factor in five facors of SERVQUAL Hence, reliable service providing generally is essential job to create a success service company The questions used to assess the credibility gap as follows: The reliability expectation:
E5 When these firms promise to do something by a certain time, they will do so
E6 When these firms promise to serves you service, they will do it in the time promised
E7 When customers go to the cinema, they can experience the friendly and satisfy environment
E87 These employeeThese employees in XYZCGV should be understanding and knowledge
E98 Service provider should meet the expectation of customers after watching films The reliability perception:
P5 When XYZ promises to do something by a certain time, it does do
P6 When XYZ promises to serve the service in right time, it does so
P76 When customers go to the cinema, XYZ can experience the friendly and satisfy environment
P87 These employeeemployees in XYZCGV have understanding and knowledge
P98 XYZ meet the expectation of customers after watching films
- The ability to meet the needs of customer (environment, film quality)
Responsiveness means willingess to help customers and to provide prompt service, whilst capturing the notion of flexbility and the ability to customize the service to customers’needs Thus, the response size SERVQUAL concerns expressed in the willingness of clients to participate in the conversation with customers to understand customer needs Response also reflects the preparation of the firms providing the service Expectations and perceptions SERVQUAL items to solve the reaction distane as follows:
E10 Service provider should support customers in everytime and at everywhere
E11 The number of employee in XYZCGV should be enough to adopt the needs E12 Employees of XYZCGV are always happy when implement their job E13 Employees of XYZCGV are always confident when implement their job Responsiveness perceptions:
P10 XYZ will support customers in everytime and at everywhere
P11 The number of employee in CGV XYZ is enough to adopt the needs P12 Employees of XYZ are always happy when implement their job
P132 Employees of XYZ are always confident when implement their job The responsiveness dimension comprises:
- Ability to maitain good working relationship with clients and clients’ staff
- Responsiveness and accessibility of staff
Assurance means competence and courtesy of employees and therability to convey trust and confidence (This category includes the measure components:competence, courtesy, credibility and security) Competence relates to the firm’s knowledge and skill in performing its service Courtesy refers to how the firm’s personel interact with the customer and the customer’s possessions As such, courtesy reflects politeness, friendliness, and consideration for the customer’s property.
Security is also an important component of the assurance dimension Security reflects a customer’s feelings that he or she free from danger, risk and doubt In addition to physical danger, the security component of the assurance dimension also reflects finacial risk issues and confidentiality issues The SERQUALSERVQUAL items utilized to address the assurance gap are as follows:
E14 Customer should leads the new trend of firms
E15 Customer should be able to feel safe in their transactions with these firm’s employees
E16 XYZ should make to watch a film in theatre better than compared to watch it in home
E17 Trailer showed in XYZ will inspire the customers
P14 Customer can trust expect the new trend of XYZ
P15 Customer feels safe in their transactions with XYZ’s employees
P16 XYZ makes to watch a film in theatre better than compared to watch it in home
P17 Trailer showed in XYZ inspire the customers
More especially, this dimension comprises:
- Understanding operational and characteristics of clients
Empathy represents provision of caring, individualized attention to customers (includes access, communcation and price the customer).
E18 Employees of XYZ who should be sensitive to individual needs and wants, rather than always relying on policies and procedures
This price of film ticket should be suitable with customers
E19 The service of XYZ should make customer feel that they are using luxury item
E20 Employees who should be sympathetic and reassuring if something is wrong The price in CGV should be competitive with the price of different entertainment
E21 XYZ should Price to have customers’s best interest at heartsof snack and extra food in CGV should be improved
P18 XYZ gives customer sensitive to individual needs and wants, rather than always relying on policies and proceduressuitable price for ticket
P19 XYZ give customers the luxury service
P20 XYZ are sympathetic and reassuring if something is wrong‘s price in CGV should be competitive with the price of different entertainment
P21 XYZ has your best interests at heart
P22 XYZ has better price of snack and extra food in CGV
The cummunication dimension in customer care service advertising operation includes:
- Price Qand quality are suitable with most of customer
2.4 Factors impact on the service quality
Economy development is the primary factor impact saling; the economy is constantly evolving, living ’s standard is also increasing The entertaining channel from theatre has favoured the people of Vietnam Thus, they also need to attract diversified customers In addition, they should also focus on quality
Thanks to advertisement ordinance, the advertising agency had flexibility in arranging the placemet of spot and cut advertising in each screen It was make customers satisfied Hence, if the advertising laws in force, the implementation of advertising on screen and media will be managed more closely by the State
2.4.1.3 The trend of intergration and globalization
Intergration trend make entertainment through cinema is hotter It is also an opportunity for foreign companies producing and publish ing film Foreign companies will lead to Vietnam for many valuable lessons in developing strategies in the field of management, to develop better performance socialization process than old cinema in our country The trend of intergration and globalization also requires units always update information and the latest techniques to ensure that the information provided to customers as well aas have the facility for working with foreign clients.
2.4.2.1 Organization and management of CGV in Vietnam
The organization and management of CGV affects the time that programs can be showed Assign tasks and power of the office in the company needed clarity to the smooth coordination of internal processes This also affects he employee to complete the task and demonstrate the professionalism inderstanding the process and the steps to be taken to the contact with the customer is going well
2.4.2.2 Coordination of advertising issued units and related units
Coordination, adjustment and coordination, that are existing processes, create convenience for customers By coordinating , the process is flexible, minimizing execution time and procedures for customers, make customers be satisfied and desire to maintain cooperation.
Gap between customer’s expectation and CGV’s performance in
3.4.2 The evaluation on Reliable factor dimensionReliable
Due to the requirements of the job, each employee in the sales is responsible following and solving the arising problem many great value transactions Thus, customers want CGV’s work forces are trustworthy, respectful of client information as well as in solving tasks and information between leadership and CGV’s customer.
Table 3.5: The expected reliability factor dimensions of CGV
1 CGV will supply honest service to customer 4.62
2 Serves customers in the time promised 4.73
32 The CGV cinemas meet the needs of custome after watching films; 4.85
43 When CGV commitment to creat an friendly and satisfied environment 4.90
54 The employee in CGV have understanding and knowledge 4.50
Reability elements are the factor that all employees in all fileds of business are required In CGV’s business operations, this is also an important factor According to the survey, approximately 94% ideas at good that CGV’s customers expectedCGV’s business professional can solve all requirements and problem at right deadline time and CGv’s employees should be have professional ethic
Table 3.6: The perception of reliability factor dimensions of CGV
1 CGV will supply honest service to customer 4.6
2 Serves customers in the time promised 4.5
32 The CGV cinemas meet the needs of custome after watching films; 4.5
43 When CGV commitment to creat an friendly and satisfied environment 4.7
54 The employee in CGV have understanding and knowledge 4.2
Reability elements are the factor that all employees in all fileds of business are required In CGV’s business operations, this is also an important factor According to the survey, approximately 94% ideas at good that CGV’s customers expectedCGV’s business professional can solve all requirements and problem at right deadline time and CGv’s employees should be have professional ethic The element: meet the needs of custome after watching films have 4.7 point It is,however, this element has the biggest gap between expectation and perception of customer compared to the remaining Each employees of CGV follow and pay attention to the feedback of customer, holding important information of clients.When customers have trustworthiness for employees, and feel that their feedback will be recognized, they will be willing to continue using service.
Gap between customer’s expectation and CGV’s performance in
Soucre: Author’s consultation Chart 3.5: Gap between customer’s expectation and CGV’s performance in
3.4.3 The evaluation on Responsible factor dimension
Responsible employee always is appreciated in any situation This is not only factor factoring that customers want but only the leaders of any which organization do, too.
The most factors that customers are interested in when using service ofCGV, CGV employees can answer and ready adopt with their customer needs.Due to many type of position in film box, the employee’s rotation policy makes many customer complaints Most customers expect CGV staff have better equipment and more information to answer customer’s questions, complaint quickly Ability to communicate well with customers is the essential requirement for any employee that working at CGV The communication skills of each employee show their professionalism and ability for handling the job.
Elements of the responses focused on the work of individual employees in the collective This factor showed the responsibilities of each employee in implementation work All elements of this factor dimensions have high expectation of customers, informs exactly when services will be provided and always willing to help have 4.8 point, employees are happy when implement their job has 4.9 point and enough to adopt the needs has 4.7 point.
The capacity of staff is an important factor to evaluate the quality of sales in CGV Because of the work required to impement many transactions with customers, CGV employees need to understand basic culture in public, especially in cinema.
Due to large number of customer have to wait to buy the ticket or popcorn, customers have many questions for the number of employees and questions for capacity of supporting them everytime and at everywhere. Thus elements CGV support customers in everytime and at everywhere are only evaluated at 4.4 points.
Table 3.9: The expected responsibility factor dimensions of CGV
1 Service provider will support customers in everytime and at everywhere 4.80
2 The number of employee in CGV is enough to adopt the needs 4.70
3 Employees of CGV are always happy when implement their job 4.90
4 Employees of CGV are always confident when implement their job 4.50
The capacity of staff is an important factor to evaluate the quality of sales in CGV Because of the work required to impement many transactions with customers, CGV employees need to understand basic culture in public, especially in cinema
Table 3.10 : The perception of responsibility factor dimensions of CGV
1 Service provider will support customers in everytime and at 4.4 everywhere
2 The number of employee in CGV is enough to adopt the needs 4.4
3 Employees of CGV are always happy when implement their job 4.7
4 Employees of CGV are always confident when implement their job 4.2
Due to large number of customer have to wait to buy the ticket or popcorn,customers have many questions for the number of employees and questions for capacity of supporting them everytime and at everywhere Thus elements CGV support customers in everytime and at everywhere are only evaluated at 4.4 points.
Gap between customer’s expectation and CGV’s performance in
Soucre: Author’s consultation 3.4.4 The evaluation on Assurance factor dimension s
Experiences in cinema are always the key factor is primary concern for business operating in the field of service provision Tetrad, the trend, the enviroment is also considered factors that creat the image, brand of CGV The same thought of almost customers is that they want to be inspired as soon as possible And of course, if everything goes on quickly and smoothie, customer would fell satisfied
The employees’s behavior instills confidence and how employees make customer feel secure in their transactions are at 4.9 points The new trend and the comparation element are expected at 4.8 points
Like other service field, factors of feeling is always taken care by CGv’s managers Hence, customers evaluate the attitude of CGV at 4.0 points while factor customer feel secure in their transactions that was evaluated at 4.7 points CGV needs to concern about the process which customer experience watching film, for example the quality of this film polished more than reality
Assurance plays a very significant role in getting customers’ pleasure and satisfaction Because of this reason, the assurance of CGV’s business professionals has to be improved more in the near fucture to meet the expected level
Table 3.11: The expected assurance factor dimensions of CGV
1 CGV always leads the new trend 4.8
2 Customers feel secure in their transactions 4.9
3 CGV cinema will make to watch a film in theatre better than compared to watch it in home
4 Trailer showed in CGV will inspire the customers 4.6
Like other service field, factors of feeling is always taken care by CGv’s managers Hence, customers evaluate the attitude of CGV at 4.0 points while factor customer feel secure in their transactions that was evaluated at 4.7 points. CGV needs to concern about the process which customer experience watching film, for example the quality of this film polished more than reality
Table 3.12: The perception of assurance factor dimensions of CGV
1 CGV always leads the new trend 4.5
2 Customers feel secure in their transactions 4.7
3 CGV cinema will make to watch a film in theatre better than compared to watch it in home 4.6
4 Trailer showed in CGV will inspire the customers 4.0
Assurance plays a very significant role in getting customers’ pleasure and satisfaction Because of this reason, the assurance of CGV’s business professionals has to be improved more in the near fucture to meet the expected level.
The gap between the expectation and perception of assuarance factor
assuarance factor dimensions of CGV
Soucre: Author’s consultation 3.4.5 The evaluation on Empathy dimension
The last element is empathy factor focus on customer feeling when they working with CGV Can customer feel that their desires, wishes are concerned, understood or not? The service here is considered as luxury product compared with other?
Table 3.13: The expected empathy factor dimensions of CGV
Employees who are sensitive to individual needs and wants, rather than always relying on policies and proceduresThe price in CGV will be accept
2 The service of CGV will make customer feel that they are using luxury item 4.8
Employees who are sympathetic and reassuring if something is wrongThe service of CGV will make customer feel that they are using luxury item
43 Seems to have customers’s best interest at heartsThe price in CGV will be competitive with the price of different entertainment 4.54.5
4 Price of snack and extra food in CGV will be improved 4.5
Soucre: Author’s consultation The last element is empathy factor focus on customer feeling when they working with CGV Can customer feel that their desires, wishes are concerned, understood or not? The price of extra services in cinema is accepted? The service here is considered as luxury product compared with other?
Three factors: Employees who ar e sensitive to individual needs and wants, rather than always relying on policies and procedures price in CGV , Employees who are sympathetic and reassuring if something is wrong and The price in CGV will be competitive with the price of different entertainment and to be customers’s best interest at hearts Price of snack and extra food in CGV are expected at 4.5 points And the remaining element service of CGV will make customer feel that they are using luxury item is evaluated at 4.8 points
Most CGV’s customers are concerned about experience and price feelings when using service here This is an important factor to evaluate the quality of services provided to CGV customers
Customers seem s more conservatively assesment of three factors: price in CGV, The price in CGV will be competitive with the price of different entertainment and Price of snack and extra food in CGV are expected They are seperately at 3.9, 4.0, 3.7points Customers have high appreciation for the reamining factor of CGV’s empathy: The service of CGV will make customer feel that they are using luxury item at 4.3 points. a ccording to the survey, emapthy of CGV’s business professionals is medium at 4.58 However, if this result is compared with the expectation, this is a quite large gap That means CGV’s business professionals are still needed to take care more carefully and attention to customers.
Table 3.14: The perception of empathy factor dimensions of CGV
Employees who are sensitive to individual needs and wants, rather than always relying on policies and proceduresThe price in CGV will be accept
The service of CGV will make customer feel that they are using luxury itemThe service of CGV will make customer feel that they are using luxury item
Employees who are sympathetic and reassuring if something is wrongThe price in CGV will be competitive with the price of different entertainment
4 Seems to have customers’s best interest at heartsPrice of snack and extra food in CGV will be improved 3.7
Customers seem more conservatively assesment of three factors:Employees who are sensitive to individual needs and wants, rather than always relying on policies and procedures are expected , Employees who are sympat hetic and reassuring if something is wrong, customers’s best interest at hearts They are seperately at 3.9, 4.0, 3.7 points Customers have high appreciation for the reamining factor of CGV’s empathy: The service of CGV will make customer feel that they are using luxury item at 4.3 points.
The gap between the expectation and perception of empathy factor
According to the survey, emapthy of CGV’s business professionals is medium at 4.58 However, if this result is compared with the expectation, this is a quite large gap That means CGV’s business professionals are still needed to take care more carefully and attention to customers
3.5 The summary on findings of the current customer service quality at CGV cinemas
3.5.1 The gap between the expectation and the perception of service quality at CGV
In conclusion, we can summarize the CGV customer’s expectation in this chart as following below:
Chart 3.9 10 : The expected servicer quality of CGV customer
To the above table, we can recognize that most expectation are 2 factors: tangibility and empathy The tangibility factors are evaluated at 4.73 points and the assuarance of CGV is scored at 4.78 points While the highest evaluation of customers perception is reliability and asuarance dimensions
Chart 3.101: The CGV customer’s perception of servicer quality
To the above table, we can recognize that most expectation are 2 factors: tangibility and empathy The tangibility factors are evaluated at 4.73 points and the assuarance of CGV is scored at 4.78 points While the highest evaluation of customers perception is reliability and asuarance dimensions
Through the results, we can see that CGV’s strength is modern facilities and luxury quality With our own professionsl invest, they build a good CGV image. Although CGV still must continue to improve their box, but CGV also had good state This factor should be even more promoted in the future to contribute the high quality of service in CGV
The element of responsiveness and assuarance are rated at moderate levels. These are factors that need to be adjusted to improve the quality of sales and supporting operation at CGV
The following chart shows the gap between the expectations and the perception that customer received from CGV’s services.
Chart 3.119: The gap between the expectation and the perception of service quality in CGV cinemas
The following chart shows the gap between the expectations and the perception that customer received from CGV’s services:
The chart showed there is no much gap between customer expectations and the current situation of the assuarance element The distance of the tangibility and empathy of CGV’s business professional’s factor are biggest, however they are the same just only at 0.6 points The distance of the asuarance element and the responsiveness at 0.33 points and 0.3 points in turn.
Slightly higher gap is realibility of CGV’s business professional factor which is at 0.22 points It suggests that the training activity of CGV is relatively good The tangibility and empathy are the widest gap with 0.6 points Thus, we can recognize that the customers expect improvement is in CGV working process
3.5.2 Existence and causes of the gaps between expectation and perception of service quality at CGV cinema
Although CGV’s work force always efforts to make good service quality, but there is still have some exist primarily and causes attached, it can be following below:
- Quality of film showed in the theatre is not satisfying all the expectations and needs of customers Although technology – driven screens in CGV as 4DX, IMAX was launched, most of customer go to CGV due to 2D and 3D films which showed mainly in the older screen It means that the quality of screening room has been assesed older than some competitors’ In the context of diversity options, the untimely upgrade quality screening room can lead to lost visitors Maybe, customers find to CGV to watch 4DX and IMAX while they go to Platinum, Lotte which that are launched after for 2D, 3D films The policy ofCGV is somewhat subjective when not keep comparing with competitors They have not still conduct a survey or research to find the own different about advantage and shortage in the market
- CGV is always proactive to show the newest film and blockbuster film compared to other screens This strong point extremely impact to taste of customers, especially those in need of pending blockbuster In fact, duration of horror film also attracts customer, it bring both profit and reputation to the company That’s reason why they show priority horror film in the nice schedule However, duration of horror film in CGV occupies too much to ensure the imagine of CGV which definites by “Culture, Great and Vital”.
- CGV cinema attracts mainly young customer who are willing to experience the new technology convenience for saving time and effort The computer utility or mobile utility of CGV seem to be the best way to sale items with this segment Clearly, social network, application mobile and website of CGV supply much benefit information to the customer These tool assist customer for planning to go outside, saving time to queu to buy tickets with many promotion It is, however, they have to faced small problem payment that they have to go early 30 minutes to pay by cash or credit card for finishing transaction Payment function of these convenience these conveniences has been frequently interrupted, low effectiveness It is difficult to payment through three tools above, even with the loyal group customers Investment sales and customer care system will be costly to manage and maintain Company has driven more investment in this system but the unt ill now, it has not been focused effective yet So reduction amount of transaction at each counter, it is necessary to invest in online system or increase number of counter.
- The volume of each screen volume of each screens about 40 – 60 customers If many films over together, the amount of people go to the elevator or go to the restroom too crowded to move Because all the the entire cinema are located in commercial centers or large mall in which design of elevators and restrooms are dependent in overall architecture This sometimes makes customer unsatisfy after watching films and coming back home.
- Due to the combination of CGV and partner like Alfresco, Pepperoni, Nestle, Commercial Bank, the service quality is influence of bureaucratic administration with multiple steps Currently, there are still some rules and procedures have not yet been reasonable that cause troubles for customers Sometimes, the problems is simple but they must contact several times, making a negative impact on the reputation of the cinema This problem is partly due to the role of personnel for implementation and monitoring mechanism of coordination is, leading to the transaction still stuck
- Although met numerous customers with luxury service but the CGV price factor including ticket and accompany food which still complain is expensive Since it provide superior service and the characteristics of the location, CGV cost input factor expensive, followed by the costly price of ticket and accompany food in cinema
Overall, the service quality of CGV has not met customer’s expectation In the trend of competition, CGV need to improve the quality of service to survive and win in competition market These standards will is the base that customers continue cooperating with CGV
CHAPTER 4 – SOLUTIONS TO IMPROVE SERVICE QUALITY
OF FOR CGV CINEMA IN VIETNAM
4.1 Oriented development on quality of CGV cinema in Vietnam:
According to the service expert’s concern about the potentials of the fast- growing Vietnamese market, they are hoping to boosting their collaborations with local film producers and distributors.
In recent years, media giants from South Korea have rushed to accumulate bigger shares in the pie, trying to capitalize on the strong interest in Korean pop culture Profitability in the Vietnamese film industry jumped from US$13.3 million in 2009 to nearly $80 million in 2014, according to the Motion Picture Association of America.
Parasuraman ‘s model 5 gaps 14
Source: http://www.serqualservqual.enstranky.cz/clanky/english/wahtisen.html
Source: http://www.serqual.enstranky.cz/clanky/english/wahtisen.html
- Tangibles involve appearance of psychical facilities, equipment, personeland personel and communication materials.
- Empathy represents provision of caring, individualized attention to customers (includes access, communication and understanding the customer).
- Resposiveness means willingess to help customers and to provide prompt service, whilts capturing the notion of flexibility and the ability to customize the service to customer needs.
The relative importance of these variables is also measured This enables you to compute the relative importance of any gaps between expectation and perceptions Management can then focus on straegies and tactics to close the important gaps.
This method could be used for internal marketing It is based on the idea that every individual in an organization, particularly a service organization, should recognize that they have customers to seve There is a positive link between internal service quality and external service quality and hence customer satisfaction, customer loyalty and the profitability of the organization Market research can be adopted for use with employees Personel can be given the opportunity to give feedback to management about working conditions, company policy in general and workers’own understanding about what comprises quality for th customer The relationship between organizational subunits and their relationship to top management are also important. This can be assesed by a variation of the SERVQUAL instrument
SERVQUAL represents service quality as the discrepancy between a customer’s expectation for a service offering and the customer’s perceptions of the service received, requiring respondents to anserw the questions about both their expectations and their perceptions The uses of perceive as apposed to actual service received makes the SERQUALSERVQUAL measure an attitude measure that is related to, but not the same as, satisfaction The difference between expectations and perceptions is called the gap which is the determinant of customer’s perception of service quality as shown on below:
The expectations of customers are subject to external factors, which are under the control of the service provider as shown on the diagram The gap on the diagram represents the difference between customer’s expectations and customer’s perceptions which is referred to as the perceive service quality (Kumar et al., 2009).This study focuses on this gap, the difference between CGV customers’ expectations and perceptions of service
Chart 2.3: Measuring service quality using SERQUALSERVQUAL model
Source: A.Parasuraman, Leonard L.berry and Valerie A.Zeithaml, 1988
Due to not have the appearance of a physical product, cnsumers often rely on tangible evidence surrounding the information services in their assessments The visible elemets in the SERQUALSERVQUAL model comparison between consumer expectations and the ability of the company to product items These factors include a variety of items such as carpets, furniture, lighting, wall colors, brochures, everyday
Gap 5 correspondence, and the emergence of the company’s employees Thus, the component is visible in the two – dimensional SERQUALSERVQUAL – a focus on equipment and facilities, the other focusing on staff and communication materials.
The tangible component of SERQUAL SERVQUAL is obtained via four expectations (E1-E4) and four perception questions (P1-P4) Comparing the perception scores to expectations scores provides a numerical variable that indicates the tangible gap The smaller the number, the smaller the gap and the closer consumer perceptions are to their expectations The questions that related to the tangible dimension are as follows:
E1 Company should have up-to-date equipment
E2 The physical facility should be visual appealing
E3 Employees should be well dressed and appear neat
E4 The appearance of website of XYZCGV should be well designed, informative and easy to search information
P1 XYZ has up-to-date equipment
P2 XYZ’s physical facilities are visually appealing
P3 XYZ’s employees are well dressed and appear neat
P4 The appearance of website of XYZCGV is in keeping with the type of services provided.
In general, reliability reflects the consistency and reliability of the company’s performance There are companies that provide the same level of service time after time, or do not have significantly different quality for each delivery There are companies keep their commitments, keeping customer’s records correctly and fully, and perform services correctly time and time again.
When companies regret on their commitments with the clients they could lose more customers in the next transaction And of the course, if the company keeps the commitments in the agreements or contracts, providesign right time service, customers will continue to use the company’s services and entice more customers to use of the same service with them
Reability can be considered as the most important factor in five facors of SERVQUAL Hence, reliable service providing generally is essential job to create a success service company The questions used to assess the credibility gap as follows: The reliability expectation:
E5 When these firms promise to do something by a certain time, they will do so
E6 When these firms promise to serves you service, they will do it in the time promised
E7 When customers go to the cinema, they can experience the friendly and satisfy environment
E87 These employeeThese employees in XYZCGV should be understanding and knowledge
E98 Service provider should meet the expectation of customers after watching films The reliability perception:
P5 When XYZ promises to do something by a certain time, it does do
P6 When XYZ promises to serve the service in right time, it does so
P76 When customers go to the cinema, XYZ can experience the friendly and satisfy environment
P87 These employeeemployees in XYZCGV have understanding and knowledge
P98 XYZ meet the expectation of customers after watching films
- The ability to meet the needs of customer (environment, film quality)
Responsiveness means willingess to help customers and to provide prompt service, whilst capturing the notion of flexbility and the ability to customize the service to customers’needs Thus, the response size SERVQUAL concerns expressed in the willingness of clients to participate in the conversation with customers to understand customer needs Response also reflects the preparation of the firms providing the service Expectations and perceptions SERVQUAL items to solve the reaction distane as follows:
E10 Service provider should support customers in everytime and at everywhere
E11 The number of employee in XYZCGV should be enough to adopt the needs E12 Employees of XYZCGV are always happy when implement their job E13 Employees of XYZCGV are always confident when implement their job Responsiveness perceptions:
P10 XYZ will support customers in everytime and at everywhere
P11 The number of employee in CGV XYZ is enough to adopt the needs P12 Employees of XYZ are always happy when implement their job
P132 Employees of XYZ are always confident when implement their job The responsiveness dimension comprises:
- Ability to maitain good working relationship with clients and clients’ staff
- Responsiveness and accessibility of staff
Assurance means competence and courtesy of employees and therability to convey trust and confidence (This category includes the measure components:competence, courtesy, credibility and security) Competence relates to the firm’s knowledge and skill in performing its service Courtesy refers to how the firm’s personel interact with the customer and the customer’s possessions As such, courtesy reflects politeness, friendliness, and consideration for the customer’s property.
Security is also an important component of the assurance dimension Security reflects a customer’s feelings that he or she free from danger, risk and doubt In addition to physical danger, the security component of the assurance dimension also reflects finacial risk issues and confidentiality issues The SERQUALSERVQUAL items utilized to address the assurance gap are as follows:
E14 Customer should leads the new trend of firms
E15 Customer should be able to feel safe in their transactions with these firm’s employees
E16 XYZ should make to watch a film in theatre better than compared to watch it in home
E17 Trailer showed in XYZ will inspire the customers
P14 Customer can trust expect the new trend of XYZ
P15 Customer feels safe in their transactions with XYZ’s employees
P16 XYZ makes to watch a film in theatre better than compared to watch it in home
P17 Trailer showed in XYZ inspire the customers
More especially, this dimension comprises:
- Understanding operational and characteristics of clients
Empathy represents provision of caring, individualized attention to customers (includes access, communcation and price the customer).
E18 Employees of XYZ who should be sensitive to individual needs and wants, rather than always relying on policies and procedures
This price of film ticket should be suitable with customers
E19 The service of XYZ should make customer feel that they are using luxury item
E20 Employees who should be sympathetic and reassuring if something is wrong The price in CGV should be competitive with the price of different entertainment
E21 XYZ should Price to have customers’s best interest at heartsof snack and extra food in CGV should be improved
P18 XYZ gives customer sensitive to individual needs and wants, rather than always relying on policies and proceduressuitable price for ticket
P19 XYZ give customers the luxury service
P20 XYZ are sympathetic and reassuring if something is wrong‘s price in CGV should be competitive with the price of different entertainment
P21 XYZ has your best interests at heart
P22 XYZ has better price of snack and extra food in CGV
The cummunication dimension in customer care service advertising operation includes:
- Price Qand quality are suitable with most of customer
2.4 Factors impact on the service quality
Economy development is the primary factor impact saling; the economy is constantly evolving, living ’s standard is also increasing The entertaining channel from theatre has favoured the people of Vietnam Thus, they also need to attract diversified customers In addition, they should also focus on quality