Research on factors influencing customer loyalty at nghia phu limited liability company

DUY TAN UNIVERSITY INTERNATIONAL SCHOOL FACULTY OF VIETNAMESE – AMERICAN MANAGEMENT ECONOMICS (PSU) NGUYEN HUU THINH RESEARCH ON FACTORS INFLUENCING CUSTOMER LOYALTY AT NGHIA PHU LIMITED LIABILITY COMPANY BUSINESS ADMINISTRATION THESIS Danang, 2023 DUY TAN UNIVERSITY INTERNATIONAL SCHOOL FACULTY OF VIETNAMESE – AMERICAN MANAGEMENT ECONOMICS (PSU) UNDERGRADUATE THESIS RESEARCH ON FACTORS INFLUENCING CUSTOMER LOYALTY AT NGHIA PHU LIMITED LIABILITY COMPANY MAJOR: BUSINESS ADMINISTRATION MENTOR : NGO HAI QUYNH CLASS : K25 PSU QTH4 STUDENT : NGUYEN HUU THINH ID NUMBER : 25211401520 Danang, 2023 ABSTRACT Customer loyalty has become a popular topic in terms of business effectiveness for both domestic and international companies In the 21st century, customer loyalty is considered a crucial factor in the business process for all levels of management across various industries To provide an overview of the factors influencing customer loyalty for businesses and companies in Vietnam, including Nghia Phu Co., Ltd, this study explores the relationship between factors such as product quality, service support quality, pricing, and customer satisfaction in relation to customer loyalty at Nghia Phu Co., Ltd Customer loyalty is a vital aspect of business success, and understanding the factors that influence it can help companies develop effective strategies to retain customers and increase revenue A mixed-method approach has been utilized, involving a survey of 250 customers through a questionnaire consisting of both current and past users of the company's products and services The study identified several factors influencing customer loyalty, including product quality, support and service quality, pricing, and customer satisfaction DISCLAIMER I hereby declare that the entire content of this research thesis is the result of my own research and writing I affirm that no part of this thesis has been copied from any other source without proper citation or the author's permission All referenced materials have been appropriately sourced and listed in the reference bibliography I declare that this thesis has not been submitted for evaluation at any other university, institute, or educational institution I understand that copying or using any portion of this thesis without my permission or the permission of Duy Tan University is a violation of regulations and may be subject to disciplinary actions by the university I solemnly declare that all the information provided in this thesis is true and accurate I take full responsibility for the content of this thesis and I am willing to accept any consequences if any violations are discovered ACKNOWLEDGEMENT After a period of research and completion of the graduation thesis at the International Training Department of Duy Tan University, I would like to express my sincere gratitude to the teachers, family, friends, and colleagues who have shown care, support, and encouragement during the process of completing this thesis First and foremost, I would like to extend my profound gratitude to Ms Ngo Hai Quynh , who directly supervised and assisted me throughout the thesis She is a dedicated mentor who was always available to answer questions and provide support, enabling me to complete my graduation with excellence I would also like to express my appreciation to the faculty members at the International Training Department of Duy Tan University who assisted and supported me during the thesis process The teachers not only imparted their specialized knowledge but also provided technical assistance and guidance in academic procedures during my studies and writing Furthermore, I would like to extend my gratitude to the University Administration, friends, and colleagues who facilitated and supported me in my work, allowing me to engage in research and complete this thesis Lastly, I would like to sincerely thank my family, who have always been by my side, providing physical and emotional support My family has been a constant source of motivation in my life, work, and studies Student Nguyen Huu Thinh TABLE OF CONTENTS ABSTRACT DISCLAIMER ACKNOWLEDGEMENT LIST OF ABBREVIATIONS LIST OF TABLES LIST OF FIGURES CHAPTER 1: INTRODUCTION 1.1 REASONS FOR CHOOSING A RESEACH TOPIC 1.2 REASEARCH OBJECTIVES 1.3 REASEARCH QUESTIONS 1.4 REASEARCH METHODS 1.4.1 Quanlitative research 1.4.2 Quantitative research 1.5 SUBJECT AND SCOPE OF RESEARCH 1.6 STRUCTURE OF THE THESIS 1.7 STUDY OVERVIEW CHAPTER 2: LITERATURE REVIEW 2.1 SOME BASIS CONCEPTS 2.1.1 History of the birth and development of loyalty 2.1.2 Loyalty 2.1.3 The role of loyalty 10 2.1.4 Measuring loyalty 11 2.2 OVERVIEW OF RESEARCH WORKS 13 2.2.1 Research by relevant domestic authors 13 2.2.2 Research by relevant foreign authors 16 2.3 PROPOSED MODEL 20 2.3.1 Proposed model 20 2.3.2 Research hypothesis 23 2.3.2.1 Product quality factor 23 2.3.2.2 Quality service and support factor 24 2.3.2.3 Price factor 25 2.3.2.4 Customer satisfaction factor 26 CHAPTER 3: RESEARCH METHODS 27 3.1 INTRODUCING ABOUT NGHIA PHU LIMITED LIABILITY COMPANY 27 3.1.1 Introduce 27 3.1.2 Business philosophy 28 3.1.2.1 Vision 28 3.1.2.2 Mission 28 3.1.2.3 Core value 28 3.1.2.4 Business capacity 28 3.1.3 Experience Profile 30 3.1.4 Organizational chart 31 3.1.5 Characteristics of business sectors and industries 33 3.2 RESEARCH PROCESS 39 3.3 RESEARCH METHODS 40 3.3.1 Qualitative research 40 3.3.2 Quantitative Research 42 3.3.2.1 Building the scale 42 3.3.2.2 Research sample 44 3.4 DATA COLLECTION METHODS 45 3.5 DATA ANALYSIS METHODS 45 CHAPTER 4: RESEARCH RESULTS 48 4.1 STATISTICAL DESCRIPTION OF SAMPLE 48 4.2 DEMOGRAPHIC CHARACTERISTICS 48 4.2.1 Gender 48 4.2.2 Age group 49 4.2.3 Occupation 50 4.2.4 Monthly income 51 4.3 ASSESSMENT OF THE RELIABILITY OF SCALE 52 4.3.1 Scale “Product quality” 53 4.3.2 Scale “Price” 53 4.3.3 Scale “Quality of service and support” 54 4.3.4 Scale “Customer Satisfaction” 54 4.3.5 Scale “Customer Loyalty” 55 4.3.6 Synthesis of Cronbach's Alpha coefficients of the scales 55 4.4 EXPLORATORY FACTOR ANALYSIS 56 4.4.1 EFA analysis for independent variable factor 56 4.4.2 EFA analysis for dependent variable factor 59 4.5 CORRELATION ANALYSIS 60 4.6 REGRESSION ANALYSIS 62 CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS .64 5.1 CONCLUSION 64 5.2 MANAGEMENT IMPLICATIONS 65 5.2.1 Management implications regarding “Product Quality” 66 5.2.2 Management implications regarding “Price” 67 5.2.3 Management implications regarding “Quality service and support” .68 5.2.4 Management implications regarding “Customer satisfaction” .69 5.3 LIMITATIONS OF THE RESEARCH AND ORIENTATIONS FOR NEXT RESEARCH 70 5.3.1 Limitation of the research 70 5.3.2 Orientations for next research 70 REFERENCES SUMMARY OF SURVEY RESULTS QUESTIONNAIRE SURVEY LIST OF ABBREVIATIONS TN : Table Number Co., Ltđ : Limited liability company SN : Sequence number LIST OF TABLES NUMBER TABLE NAME PAGE Table 2.1 Summary of factors affecting loyalty 19 Table 2.2 Table of factors and observed variables from reference topics 22 Table 3.1 Experience Profile 31 Table 3.2 Formal scale 43 Table 4.3.1 Cronbach's Alpha coefficient of product quality scale 53 Table 4.3.2 Cronbach's Alpha coefficient of the Price scale 53 Table 4.3.3 Cronbach's Alpha coefficient of quality of service and support scale 54 Table 4.3.4 Cronbach's Alpha coefficient of customer satisfaction scale 54 Table 4.3.5 Cronbach's Alpha coefficient of customer loyalty scale 55 Table 4.3.6 Summary table of Cronbach's Alpha coefficients of the scales 55 Table 4.4.1 Results of testing coefficients KMO and Bartlett's 56 Table 4.4.2 Interpretation results of total variance extracted 57 Table 4.4.3 Results of EFA analysis according to the scale of independent factors 58 Table 4.4.4 Results of testing coefficients KMO and Bartlett's 59 Table 4.4.5 Interpretation results of total variance extracted 59