Relationship between service recovery and service recovery satisfaction in courier logistics service an empirical evidence from vietnam

VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY NGUYEN THANH TUNG RELATIONSHIP BETWEEN SERVICE RECOVERY AND SERVICE RECOVERY SATISFACTION IN COURIER LOGISTICS SERVICE: AN EMPIRICAL EVIDENCE FROM VIETNAM MASTER’S THESIS VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY NGUYEN THANH TUNG RELATIONSHIP BETWEEN SERVICE RECOVERY AND SERVICE RECOVERY SATISFACTION IN COURIER LOGISTICS SERVICE: AN EMPIRICAL EVIDENCE FROM VIETNAM MAJOR: BUSINESS ADMINISTRATION CODE: 8430101.01 RESEARCH SUPERVISORS: Prof Dr TOHRU INOUE Associate Prof Dr PHAN CHI ANH Hanoi, 2022 COMMITMENT I have read the plagiarism infractions and understand them I certify on my own honor that this research result is original to me and does not breach the VNU Vietnam Japan University's policy prohibiting plagiarism in academic and scientific research activities (issued in conjunction with Decision No 700/QD-DHVN dated September 30, 2021) Hanoi, 28 May 2022 Master student Nguyen Thanh Tung RESPONSIBILITY DECLARATION I would like to declare that my Master’s thesis of “RELATIONSHIP BETWEEN SERVICE RECOVERY AND SERVICE RECOVERY SATISFACTION IN COURIER LOGISTICS SERVICE: AN EMPIRICAL EVIDENCE FROM VIETNAM” is the product of my research and has never been published in any other work Throughout the execution of this project, I have taken research ethics very seriously; all findings are the product of my study and surveys, and all sources are properly referenced according to rules I am solely responsible for the accuracy of my graduation project’s numbers, statistics as analysis, and other materials to be used in this research Hanoi, 28 May 2022 Master student Nguyen Thanh Tung ACKNOWLEDGEMENT First and foremost, it can be claimed that the master's thesis gives me a great chance to assess how I can use the knowledge and skills I acquired over my two years at Vietnam Japan University (VJU) My sincere gratitude goes out to everyone who assisted me in finishing this job First of all, despite the fact that they are both quite busy with their jobs and businesses, I would like to express my sincere gratitude to Prof Dr Tohru Inoue and Ass Prof Dr Phan Chi Anh for taking the time to mentor me during this time The fact that they consistently urge me to independent research and attempt to relate the theoretical subject with the actual problems in my real company in the logistics industry makes them both appropriate supervisors for me There are no suitable words to express how grateful I am for their endurance, kindness, inspiration, excellent training, and ideas that have improved this research Second, I want to express my gratitude to Yokohama National University (YNU) and VJU of Vietnam National University (VNU) in Hanoi for giving me the opportunity to expand my research knowledge and skills Thirdly, I want to thank Mrs Nguyen Thi Huong, the program assistant for the MBA program, for her help with administrative concerns In addition, Ass Prof Dr Yoshifumi Hino received much gratitude and respect for being our primary JICA specialist and instructor in a number of fascinating courses He provided us with a wealth of invaluable information and pointers for our research path Fourthly, I would like to thank my family and friends for always encouraging me and giving me the crucial support that I need to get through the challenging time it takes to finish the paper However, there are a number of areas in this report that might be improved owing to a lack of knowledge and skills as well as time restrictions I thus appreciate your helpful suggestions on how to make it better very much Sincerely, TABLE OF CONTENTS LIST OF TABLES i LIST OF FIGURES ii LIST OF ABBREVIATIONS iii ABSTRACT iv CHAPTER 1: INTRODUCTION 1.1 Study background 1.2 Study motivation and Research gap 1.2.1 Theoretical necessity 1.2.2 Practical necessity 1.2.3 Research gap 1.3 Study Objective, Questions 1.4 Structure and Scopes of Study CHAPTER 2: LITERATURE REVIEW .6 2.1 The Service recovery (SR) 2.2 The Service recovery satisfaction (SRS) 2.3 The Service recovery (SR) and the Service recovery satisfaction (SRS) .9 2.4 The attribution theory on the role of service failure’s cause determination .10 2.5 “Perceived control” and “Stability attribution” interacting with the relationship between the Service recovery and Service recovery satisfaction 12 CHAPTER 3: METHODOLOGY 16 3.1 Sample and data collection 16 3.2 Scales - Measurement 17 3.3 Analytical Framework 18 3.4 Data analysis methodology 20 3.4.1 Demographic Statistic and Descriptive analysis 21 3.4.2 Reliability test and Factor analysis to measure Model 22 3.4.3 Summary measurement statistics of construct variables 25 3.4.4 Pearson’s correlation analysis .27 3.4.5 Hypothesis testing - Regression 28 3.4.6 Analyses of moderating interactions 31 CHAPTER 4: DISCUSSION AND IMPLICATION 39 CHAPTER 5: LIMITATION AND FUTURE RESEARCH 43 REFERENCE 45 APPENDIX A: LITERATURE SUMMARY .48 APPENDIX A.1 48 APPENDIX A.2 51 APPENDIX B: ANALYSIS RESULT 52 APPENDIX B.1 52 APPENDIX B.2 56 APPENDIX B.3 59 APPENDIX B.4 65 APPENDIX B.5 67 APPENDIX C: THE QUESTIONAIRE OF SURVEY 69 LIST OF TABLES Table 3.1 Table 3.2 Table 3.3 Table 3.4 Table 3.5 Table 3.6 Table 3.7 Table 3.8 Table 3.9 The 07 – Linkert scale The Variables and scales of measurement The summary of Cronbach’s Alpha result test after the filter The Measurement statistics of construct scales The result of Pearson’s correlation analysis The influence result of SR to SRS when applying Justice theory The regression result of the moderation effect test The regression result of the moderation effect test after removing not supported variables The summarized table of hypothesis’s result Page 17 18 24 27 28 30 32 35 36 i LIST OF FIGURES Page Figure 2.1 Figure 2.2 Figure 3.1 Figure 3.3 The service recovery paradox diagram The Perceived control, and Stability Attribution correlating with the Customer satisfaction Proposed analytical framework The concluded framework 13 19 38 ii LIST OF ABBREVIATIONS IJ OJ PC PJ SA SF SR SRS Interactive Justice Outcome Justice Perceived control Procedural Justice Stability attribution Service failure Service recovery Service recovery satisfaction iii .891 891 Item-Total Statistics Scale Scale Mean if Variance if Item Item Deleted Deleted OJ1 17.50 OJ2 Corrected Squared Cronbach’s Item-Total Multiple Alpha if Item Correlation Correlation Deleted 5.355 832 904 831 17.14 5.882 712 551 876 OJ4 17.30 5.768 689 530 886 OJ5 17.44 5.545 810 898 840 - Other variables as PC, SA and SRS are good for index as: PC: Reliability Statistics Cronbach’s Alpha 927 Cronbach’s Alpha Based on Standardized Items 923 N of Items SA: Reliability Statistics Cronbach’s Alpha 877 Cronbach’s Alpha Based on Standardized Items 883 N of Items 63 SRS: Reliability Statistics Cronbach’s Alpha 880 Cronbach’s Alpha Based on Standardized Items 881 N of Items 64 APPENDIX B.4 The table of Factor analysis test for independent variables KMO and Bartlett’s Test Kaiser-Meyer-Olkin Measure of 717 Sampling Adequacy Bartlett’s Test of Approx Chi- Sphericity Square 7461.823595 df 190.000000 Sig 0.0E0 Total Variance Explained Compo Initial Eigenvalues nent Extractio Rotation n Sums Sums of of Squared Squared Loadings Loadings Tot % of Cumulati Tot % of al Varia ve % al Varia nce 4 1.7 8.735 1.5 7.834 0.7 3.807 48.129 64.069 72.804 1.74 8.735 72.804 80.638 1.56 7.834 67 27.869 64.069 3.18 15.94 47 al % of Cumulati Varia ve % nce 48.129 4.05 20.26 3.1 15.94 88 27.869 5.57 27.86 4.0 20.26 52 ve % nce 5.5 27.86 74 Cumulati Tot 80.638 3.8 19.36 74 3.3 16.71 44 3.2 16.27 55 3.2 16.18 36 2.4 12.09 20 19.369 36.087 52.359 68.539 80.638 84.445 61 65 0.5 2.981 87.426 96 0.5 2.601 90.027 20 0.4 2.454 92.481 91 10 0.4 2.166 94.647 33 11 0.3 1.925 96.572 85 12 0.2 1.330 97.902 66 13 0.1 0.539 98.440 08 14 0.0 0.491 98.932 98 15 0.0 0.342 99.274 68 16 0.0 0.272 99.546 54 Extraction Method: Principal Component Analysis 66 APPENDIX B.5 The table of Factor analysis test for dependent variable KMO and Bartlett’s Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett’s Test of Sphericity 550 Approx Chi-Square 1199.359 df 10 Sig .000 Total Variance Explained Compone Initial Eigenvalues nt Tota l 3.38 % of Varianc e 67.788 0.81 Loadings Cumulative Tota % l 67.788 3.38 Extraction Sums of Squared % of Varianc e 67.788 Cumulative % 67.788 16.227 84.014 9.908 93.923 5.061 98.984 1.016 100.000 0.49 0.25 0.05 67 Component Matrixa Component SRS2 0.871 SRS4 0.841 SRS1 0.817 SRS3 0.795 SRS5 0.790 Extraction Method: Principal Component Analysis a components extracted 68 APPENDIX C: THE QUESTIONAIRE OF SURVEY THE RELATIONSHIP BETWEEN THE SERVICE RECOVERY & SERVICE RECOVERY SATISFACTION IN COURIER LOGISTICS SERVICE: AN EMPIRICAL EVIDENCE FROM VIETNAM Dear Sir/Madam; We are a Research Group from Vietnam Japan University, Vietnam National University, Hanoi Currently, we are conducting a study on the impact of Service Recovery on Service Recovery Customer Satisfaction in Courier Logistics (SHIPPING) This study aims to contribute to the scientific database to further improve the Quality of Courier Logistics Services in Vietnam All information is surveyed, and we will commit to keep this data confidential We would love for you to take a moment to take this survey and fill out the form below We sincerely thank you for your assistance in completing this survey For all related issues, please contact me via email: 20117017@st.vju.ac.vn or Tel: 0966.874.834 (Nguyen Thanh Tung) Here are the questions, you just need to tick to choose the answer, looking forward to your valuable cooperation: [CV1] BASIC INFORMATION (This question is mandatory) Your gender? Choose one of the following answers  Male  Female  Others (This question is mandatory) Married status? Choose one of the following answers 69  Single  Married  Others (This question is mandatory) Your age levels? Choose one of the following answers  18-30 years old  31-40 years old  41-50 years old  51-60 years old  Over 60 years old (This question is mandatory) Your education? Choose one of the following answers  Under High School  High School Graduation  College Graduation  Master  Ph.D (This question is mandatory) What is your average monthly income? Choose one of the following answers 70  Under millions VND  05-10 millions VND  10-20 millions VND  20-30 millions VND  Over 30 millions VND How often you use Courier Logistics Services in a month? Choose one of the following answers  Never using  Under 05 times  From 05-10 times  From 10-15 times  From 15-20 times  From 20-30 times  Over 30 times Please enter your comment here: (This question is mandatory) The level of budget that you use Courier Logistics Services for a month? Choose one of the following answers  No need to pay 71  Under 01 millions VND  From 02-05 millions VND  From 05-10 millions VND  From 10-20 millions VND  From 20-30 millions VND  Over 30 millions VND Please enter your comment here: (This question is mandatory) How often you get Service Failure, Crash in Courier Logistics Services? Choose one of the following answers  Never  Seldom  Sometimes  Common  Regularly  Continuity  Always (This question is mandatory) Where you usually SEND goods? 72 Choose one of the following answers  Post office/Hub  Private house  Working place (This question is mandatory) How often you get the Service Recovery in Courier Logistics Services? (Including successful or unsuccessful remediation) Choose one of the following answers  Never  Seldom  Sometimes  Common  Regularly  Continuity  Always (This question is mandatory) Where you usually RECEIVE goods? Choose one of the following answers  Post office/Hub  Private house  Working place 73 [SRP] [PC] [SA] [SRS] CUSTOMER’S PERCEPTION WHEN THE COURIER LOGISTICS SERVICE IS RECOVERIED All Services, even the Premium Services, are subject to the possibility of errors or problems For Courier Services, Failure or problems may also occur Please recall a time when you experienced a Courier Service Failure or problem to answer the questions below The level of agreement of the questions increased from 01 to 07: Level 01: Totally disagree; Level 02: Disagree; Level 03: Partly disagree; Level 04: Neutral; Level 05: Partially agree; Level 06: Agree; Level 07: Totally agree (This question is mandatory) Totally disagree Disagree Partly disagree Neutral Partly agree Agree Totally agree [IJ1] You were taken care of by Courier Logistics Company staff when you complained about a service failure? [IJ3] Have you reported the problem directly to the Courier Logistics carrier employee? (Example: By phone, face-to-face ) [SRS2] Are you satisfied with how Courier Logistics staff handled service failures? [PJ1] In the process of service recovery, have you been free to express your opinion? [SRS5] You satisfied with the results of service recovery that the Courier Logistics provider has done? [PC4] No one is responsible for this service failure? 73 [IJ2] Did the Courier Logistics carrier staff actively work to fix the service when something went wrong? [PJ2] Overall, does the Courier Logistics carrier have a good procedure when it comes to service failure? [SRS4] Did the Courier Logistics carrier show flexibility when it comes to recovery their service for you? [IJ7] Contact information and troubleshooting instructions are easily found on the Courier Logistics carrier’s website? [PC1] Does this service failure come from objective external circumstances? [SRS4] In your opinion, the Courier Logistics carrier provided a satisfactory, flexible solution for me with this service failure? [PJ5] Is the service recovery procedure satisfactory and consistent in the times of error correction? [OJ4] The courier Logistics firm has many forms of compensation for loss? (Example: Cashback, Service Discount, For a higher service package, etc.)? [IJ9] Did the Courier Logistics carrier staff interact with you quickly? 74 [OJ5] Were the results of the service recovery reasonable and satisfactory? [SA3] Is the cause of this problem not immutable and can be changed? [PJ3] Did the Courier Logistics carrier try to solve the problem as quickly as possible? [IJ4] Did you have a satisfactory explanation of the cause of the service failure from the Courier Logistics carrier staff? [PC3] This service failure cannot be controlled by you or the Courier Logistics carrier? [OJ1] The service failure occurred has been fixed? [SRS3] Are you satisfied with the process and tools that the Courier Logistics provider uses to resolve service failures? [PJ6] Can you appeal decisions after the service recovery is completed? [IJ5] Were the Courier Logistics carrier employees honest when dealing with service failure? [SA1] The cause of this service failure has a temporary element? 75 [OJ3] Are the results of service failure remediation consistent, across remediation attempts? [IJ8] Do the Courier Logistics carrier employees have the authority and ability to resolve the failure? [SA2] Will the cause of this service failure change over time or different uses? [IJ6] Do employees of the Courier Logistics carrier have a polite attitude when fixing service errors? [SRS1] Are you satisfied with the way that the Courier Logistics provider handles and resolves service failures? [PC2] Is this service failure out of you or Courier Logistics carrier’s expectations? [OJ2] Given the consequences of the Service failure occurring and the time it took to file a claim, you find the service recovery results from the Courier Logistics carrier to be acceptable? 76