Determine the perception of customers aboutservice quality at the coffee house chain of storesin ho chi minh city and offer solutions toimprove customer perception

Trang 1 THE MINISTRY OF FINANCEUNIVERSITY OF FINANCE MARKETINGASSIGNMENT ON: QUALITY MANAGEMENTDetermine the perception of customers aboutservice quality at the Coffee House chain of sto

THE MINISTRY OF FINANCE UNIVERSITY OF FINANCE MARKETING

ASSIGNMENT ON: QUALITY MANAGEMENT

Determine the perception of customers about service quality at the Coffee House chain of stores

in Ho Chi Minh City and offer solutions to

improve customer perception.

Instructor: Nguyễn Gia NinhMember of team:

1 Nguyễn Thái Hòa 2121005576

2 Nguyễn Thái Khánh Ngân 2121011478

3 Đỗ Lê Hà Thanh 2121000081

4 Phan Thị Thanh Thanh 2121003292

5 Nguyễn Ngọc Mai Thảo 2121000216

Ho Chi Minh City, 2023

THE MINISTRY OF FINANCE UNIVERSITY OF FINANCE MARKETING

ASSIGNMENT ON: QUALITY MANAGEMENT

Determine the perception of customers about service quality at the Coffee House chain of stores

in Ho Chi Minh City and offer solutions to

improve customer perception.

Instructor: Nguyễn Gia NinhMember of team:

6 Nguyễn Thái Hòa 2121005576

7 Nguyễn Thái Khánh Ngân 2121011478

8 Đỗ Lê Hà Thanh 2121000081

9 Phan Thị Thanh Thanh 2121003292

10 Nguyễn Ngọc Mai Thảo 2121000216

Ho Chi Minh City, 2023

2

THANK YOU

The group would like to express our sincere thanks and deep gratitude to theteachers of the University of Finance and Marketing in general and the teachers of theBusiness Administration major in particular Most especially, the group would like tothank the guidance and Mr Nguyen Gia Ninh enthusiastically led this StrategicManagement subject during the group's study period as well as the preparation of thisreport

However, throughout the internship process as well as preparing this report,mistakes cannot be avoided We hope you will forgive them The group is lookingforward to receiving contributions from the teacher From here, the group will drawvaluable experiences and accumulate good knowledge to be able to complete the nextreports better

The team sincerely thanks you!

TABLE OF CONTENTS

CHAPTER 1: THEORETICAL BASIS FOR THE DEVELOPMENT OF THE

SERVQUAL MODEL 1

1.1 The gaps model of service quality 2

1.2 Service quality dimension 4

CHAPTER 2: SURVEY OF CUSTOMER PERCEPTIONS ABOUT THE COFFEE HOUSE SERVICE QUALITY AND SURVEY RESULTS 6

2.1 Service quality assessment model and scale design 6

2.1.1 On customer perception of service quality at The Coffee House coffee shop chain in Ho Chi Minh City 6

2.1.2 Customers' expectations about service quality at The Coffee House coffee shop chain in Ho Chi Minh City 9

2.2 Survey sample 13

2.3 Descriptive statistical analysis of cognitive surveys 17

2.4 Assessing Differences in Expectations and Perception 21

2.5 Summary 25

CHAPTER 3: CURRENT STATUS OF SERVICE QUALITY AT THE COFFEE HOUSE CHAIN STORES 27

3.1 General introduction to The Coffee House chain of stores 27

3.1.1 The process of formation and development 27

3.1.2 Product 28

1.3 Current status of service quality at The Coffee House 30

CHAPTER 4: DESIGNING AND IMPROVING THE SERVICES TRANSACTION 37

4.1 Service Blueprint in TCH và Potential Fail Point 37

4

4.2 Poka-yoke 41 CHAPTER 5: CONCLUSION 43 REFERENCES 44

TABLE OF FIGURE

Figure 1: Gap model of service quality 2

Figure 2: Two-Dimensional Differencing Plane 24

Figure 4 1: Service Blueprint in TCH 36

Figure 4.2: Ringo staff call bell 39

Figure 4.3: POS System 41

6

100% (4)

23

ÔN TẬP QUẢN TRỊ CHẤT LƯỢNG

100% (3)

17

Speaking-lop 4 - ôn tập Tiếng Anh 4

Quan tri

kinh doanh 60% (10)

2

ÔN TẬP QTRI CHẤT LƯỢNG - abvv

TABLE OF TABLES

Table 1: The Relationship Between the Original Model (1985) and the Revised Model

(1988) 4

Table 2.1: Coding The Perception Scale 6

Table 2 2: Coding The Expectation Scale 10

Table 2 3: General Survey Population 14

Table 2.4: Descriptive Statistics For The Factor Service Reliability 17

Table 2.5:Descriptive Statistics For The Responsiveness Factor 17

Table 2.6: Descriptive Statistics For The Empathy Level Factor 18

Table 2.7: Descriptive Statistics For The Assurance Factor 19

Table 2.8: Descriptive Statistics For Tangibles Factor 20

Table 2.9: GAP Score Table Between Average Perception And Average Expectation 21

7

English - huhu

Led hiển thị 100% (3)

10

CHAPTER 1: THEORETICAL BASIS FOR THE DEVELOPMENT OF THE

SERVQUAL MODEL

Since 1930, quality in the manufacturing industry has been inherently regarded as

a competitive factor, while service quality is a factor that was developed later Customerdemands will continue to evolve, which is why businesses must continuously provideservices that exceed their expectations Quality is a set of characteristics and features of aproduct that can satisfy stated or implied needs (Katerina D Gotzamani, 2005).Therefore, if a certain product fails to please customers, it is considered to have poorquality, regardless of how advanced the manufacturing technology may be For highlytangible products, measuring service quality becomes more complex and challengingwhen comparing various distinct attributes (Kathleen Seiders, 2005)

Intangibles - customers cannot see, touch, or smell when choosing topurchase a service product

Inseparability - the service product is inherently linked with production anddistribution

Heterogeneity - service products are influenced by various factors, andsometimes they are not produced uniformly over different time periods.Perishability - service products are difficult to transport or cannot be storedfor extended periods

Due to the intangible nature of a particular service, providers often faceDue to theintangible nature of a certain service, providers often encounter difficulties inunderstanding customer perceptions and evaluations of the overall service quality.Furthermore, service quality is also manifested through the interaction betweenemployees and customers (Svensson, 2002) Lehtinen (1982) introduced a commonmeasurement scale consisting of three service quality factors: physical facilities,interaction, and collective factor Gronroos' model (1993) affirmed the roles of technicaland functional quality Functional quality represents the end result of the process

provided to the customer Assessing technical quality is generally easier than assessingfunctional quality As for the perception of service quality, it results from the customer'sexperience and expectations regarding the service (Caruana, Money, & Berthon, 2000).Parasuraman and colleagues (1985) conducted extensive research and developed ameasurement tool comprising 22 observable variables, known as SERVQUAL This scalehelps measure the 5 gaps between customer expectations and the actual service provided

1.1 The gaps model of service quality

Figure 1: Gap model of service quality

According to the model, the gap between customer expectations and perceptions

of service quality is represented by the remaining four gaps

Gap 1 shows that there can be a difference between actual customer expectationsand management’s idea or perception of customer expectations

2

Gap 2 Managers’ expectations of service quality may not match service qualityspecifications Once managers truly understand what the customer wants, then asystem can be developed to help provide exactly what the customer wants Gap 3 Once services specifications have been established, the delivery of perfectservice quality is still not guaranteed Inadequate training, communication, andpreparation of employees who interact with the customer, referred to as contactpersonnel, can lower the quality of service delivered

Gap 4 shows the differences between service delivery and externalcommunications with the customer Companies influence customer expectations ofservices through word of mouth and through other media such as advertising As aresult, there could be a difference between what customers hear you say you aregoing to deliver as a service provider and what you actually deliver

→ Therefore, Gap 5 = Gap 1 + Gap 2 + Gap 3 + Gap 4 (Gap 5 is the difference betweenperceived and expected services, which we considered briefly when we introduced theSERVQUAL instrument.)

This model is a general, highly theoretical model of service quality To apply it inpractice, Parasuraman and colleagues developed another scale for assessing quality in theservice sector, which customers perceive for any service based on 10 components,including: (1) Reliability; (2) Responsiveness; (3) Service competence; (4) Access; (5)Courtesy; (6) Information; (7) Trust; (8) Security; (9) Understanding of customers; (10)Tangibles (Bexley, 2005) This model has the advantage of covering most aspects ofservices; however, the SERVQUAL scale is quite complex, making analysis andevaluation more challenging According to Parasuraman and colleagues (1988), assessingservice quality through perception by comparing their expectations with their perceptions

of what the business has provided Therefore, Parasuraman and his colleagues (1988)revised and implemented a new model consisting of five fundamental components

I.2 Service quality dimension

Table 1: The Relationship Between the Original Model (1985) and the Revised Model (1988)

Original Model (1985) Revised Model (1988)

factors like cleanliness, the appearance of staff, and the physical layout of the serviceenvironment.

Service Reliability

Reliability refers to the ability of the service provider to consistently deliveraccurate and dependable services Customers expect services to be reliable and error-free.This dimension also encompasses aspects like the service provider's ability to fulfillpromises and commitments

Responsiveness

Responsiveness focuses on the willingness and ability of the service provider tohelp customers promptly and address their needs or concerns It involves factors like thespeed of service delivery, the attentiveness of the staff, and the provider's willingness toassist

Assurance

Assurance relates to the competence and credibility of the service providers Itincludes elements like the knowledge and expertise of the staff, their ability to instill trustand confidence in customers, and the ability to convey a sense of security

Empathy

Empathy pertains to the provider's ability to understand and care for the individualneeds and emotions of customers It includes aspects like effective communication,personalized service, and a genuine willingness to understand and cater to the customer'sfeelings and concerns

Based on the traditional definition, Parasuram (1991) eventually constructed the SERVQUAL scale to assess service quality, consisting of 22 variables to measure both expected and perceived service quality

CHAPTER 2: SURVEY OF CUSTOMER PERCEPTIONS ABOUT THE COFFEE

HOUSE SERVICE QUALITY AND SURVEY RESULTS

2.1 Service quality assessment model and scale design

Through the above theoretical basis as well as related research, the group realizedthat Parasuraman's research was close to the group's topic, so the group determinedParasuraman's SERVQUAL model as a reference model Inheriting previous researchresults, especially inheriting the SERVQUAL scale set proposed by Parasuraman,Zeithaml and Berry in 1988, the team adjusted and redesigned the scale

2.1.1 On customer perception of service quality at The Coffee House coffee shop chain in Ho Chi Minh City.

The 5-level Likert scale is represented as follows: (1) Very dissatisfied, (2)Dissatisfied, (3) Neutral, (4) Satisfied, (5) Very satisfied The use of this scale is verypopular in socio-economic research because socio-economic issues are multi-faceted Thescale to measure customer perception of service quality at The Coffee House coffee shopchain in Ho Chi Minh City, includes observed variables shown in the table as follows:

Table 2.1: Coding The Perception Scale

1: Very dissatisfied→ 5: Very satisfied Service Reliability

1 TC1 Providing quality drinks, ensuring safety and

hygiene

1 2 3 4 5

6

2 TC2 Have a streamlined order processing system 1 2 3 4 5

3 TC3 Served on time as promised 1 2 3 4 5

4 TC4 Accurate invoices to customers 1 2 3 4 5

5 TC5 No errors occurred when serving drinks 1 2 3 4 5

Responsiveness

6 DU1 The staff you asked for was correct and quick 1 2 3 4 5

7 DU2 Maintain service speed and quality even

when crowded

1 2 3 4 5

8 DU3 Efforts to handle special requests 1 2 3 4 5

9 DU4 Staff are always ready to help you 1 2 3 4 5

10 DU5 Staff are never too busy to accommodate

your requests

1 2 3 4 5

Empathy

11 DC1 You always receive advice from staff when

you encounter problems

1 2 3 4 5

12 DC2 The staff is attentive to individual requests 1 2 3 4 5

13 DC3 Employees always put customers' interests

first

1 2 3 4 5

14 DC4 Employees show interest in you 1 2 3 4 5

15 DC5 Staff present themselves courteously and

politely to customers

1 2 3 4 5

Assurance

16 NL1 Staff can fully answer customers' questions 1 2 3 4 5

17 NL2 Staff provide information about the menu

and ingredients in drinks

1 2 3 4 5

18 NL3 Employees anticipate customer needs 1 2 3 4 5

19 NL4 Processing support is always provided

promptly when there is a problem during

service use

1 2 3 4 5

20 NL5 The service attitude of store staff makes

customers feel comfortable

1 2 3 4 5

Tangibles

21 HH1 The store space is spacious and airy 1 2 3 4 5

8

22 HH2 Staff uniforms are neat and polite 1 2 3 4 5

23 HH3 The menu looks easy to read, attractive and

eye-catching

1 2 3 4 5

24 HH4 Strong wifi access level 1 2 3 4 5

25 HH5 The toilet is clean 1 2 3 4 5

26 HH6 Convenient parking 1 2 3 4 5

27 HH7 The store’s service hours suit for you 1 2 3 4 5

2.1.2 Customers' expectations about service quality at The Coffee House coffee shop chain in Ho Chi Minh City.

The 5-level Likert scale is represented as follows: (1) Very dissatisfied, (2)Dissatisfied, (3) Neutral, (4) Satisfied, (5) Very satisfied The use of this scale is verypopular in socio-economic research because socio-economic issues are multi-faceted Thescale to measure customer expectations about service quality at The Coffee House coffeeshop chain in Ho Chi Minh City, includes observed variables shown in the table asfollows:

Table 2.2: Coding The Expectation Scale

1:Very dissatisfied

→ 5: Very satisfied Service Reliability

1 TC1 A good coffee chain will provide quality

recipes, ensuring safety and hygiene

1 2 3 4 5

2 TC2 A good coffee chain will have a reasonable

order processing system

5 TC5 A good coffee chain will not make mistakes

when serving drinks

1 2 3 4 5

Responsiveness

6 DU1 A good coffee chain will have staff who serve

you on requested, quickly

1 2 3 4 5

7 DU2 A good coffee chain will maintain speed and

quality of service even when crowded

1 2 3 4 5

8 DU3 A good coffee chain will make an effort to

handle special requests

1 2 3 4 5

10

9 DU4 The staff at a good coffee chain will always be

available to assist you

1 2 3 4 5

10 DU5 The staff at a good coffee chain will never be

too busy to accommodate your request

1 2 3 4 5

Empathy

11 DC1 You always get advice from the staff when

you have a problem at a good coffee chain

1 2 3 4 5

12 DC2 Staff at a good coffee chain will take care of

individual requests

1 2 3 4 5

13 DC3 Employees at a good coffee chain will always

put customers' interests first

1 2 3 4 5

14 DC4 Employees at a good coffee chain will show

concern for customers

1 2 3 4 5

15 DC5 Employees at a good coffee chain will show

courtesy and courtesy to customers

1 2 3 4 5

Assurance

16 NL1 Employees at a good coffee chain will be

perfectly able to answer customer questions

1 2 3 4 5

17 NL2 Staff provide information about the menu and

ingredients in drinks

1 2 3 4 5

18 NL3 Employees anticipate customer needs 1 2 3 4 5

19 NL4 A good coffee chain will always receive

timely support when problems occur during

service use

1 2 3 4 5

20 NL5 The service attitude of the staff at a good

coffee chain will always make customers feel

22 HH2 The staff's attire at a good coffee chain will be

neat and polite

1 2 3 4 5

23 HH3 The menu at a good coffee chain will be easy

to read, attractive, and eye-catching

Table 2 3: General Survey Population

Current profession Student 2 1.5%

9:01 – 11:00 29 21.2%11:01 – 13:00 10 7.3%13:01 – 15:00 27 19.7%After 15:00 68 49.6%

Meet friends and 61 44.53%

14

partnersTake photos and film 9 6.6%

Ho Chi Minh City

Age

Of the total 137 customers surveyed, the majority of customers were between theages of 18 and 30, with 131 accounting for 95.6% Meanwhile, the number of guestsunder 18 years old and over 30 years old accounts for 2 guests accounting for 1.5% and 4guests accounting for 2.9% (2023) Therefore, the survey was conducted based on most

of the competitors who have the most contact with the cafe, the age difference will nottoo much affect the assessment results of customer awareness and expectations

Current profession

The survey results show that the number of customers using The Coffee House'sservices is high: 79 students account for 57.7% and 36 working people account for26.3% Because these are customers of working age, with stable and high income.

Number of visits to the store.

Variable number of visits to the store, the survey subjects mainly visited the storeless than once a month with 75/137 people, accounting for 54.7%, of the number ofpeople coming Every month, 28/137 people account for 20.4% of the number of peoplecoming Weekly in third place accounts for 22/137 people with 16.1%, the number ofpeople who come every 2 weeks is 11/137 people and the number of people who comeevery day is a very small number of only 1/137 people, the ratio is not yet first%

Purpose of coming to the store:

Through the table above, we can see that the purpose of the survey subjects whooften go to the shop to study is the highest, accounting for 71 responses, followed byWorking, which is also relatively high, with 68 responses, and meeting friends.Collaboration and Sitting, relaxing, and admiring the view had the same number ofanswers with 61 answers and 47 answers respectively Survey subjects who came to theshop for Dating had 16 answers, especially coming to the shop to Take Photos.photography/videography and Reading had very similar 9 and 10 answers

2.3 Descriptive statistical analysis of cognitive surveys

a Descriptive statistics of observed variables in the service reliability level factor

Table 2.4: Descriptive Statistics For The Factor Service Reliability

N Minimum Maximum Mean Std.Deviation

TC1 137 1 5 2.45 902

16

.914.946.941.933

The average values of observed variables from TC1 to TC5 in the service reliability level group are all within the range of 2 to 2.98 on the 5-point Likert scale Thus, themajority of respondents who responded to the survey were not satisfied with the criteria

in the service reliability level group

b Descriptive statistics for observed variables in the responsiveness level factor Table 2.5:Descriptive Statistics For The Responsiveness Factor

N Minimum Maximum Mean Std.DeviationDU1

DU2

DU3

137137137

111

555

2.322.212.21

.816.879.887

DU5

Valid N (listwise)

137137137

11

55

2.492.32

.845.910

The average values of observed variables from DU1 to DU5 in the Responsivenessgroup are all within the range of 2.21 to 2.49 on the 5-point Likert scale Thus, themajority of respondents who responded to the survey were not satisfied with the criteria

in the Responsiveness group

c Descriptive statistics of observed variables in the empathy level factor Table 2.6: Descriptive Statistics For The Empathy Level Factor

N Minimum Maximum Mean Std.Deviation

18

55555

3.873.763.843.773.96

.830.887.876.891.852

The average values of observed variables from DC1 to DC5 in the Empathy levelgroup are all within the range of 3.76 to 3.96 on the 5-point Likert scale Thus, themajority of participants who responded to the survey were satisfied with the criteria in theEmpathy Level group

The average values of DC1 to DC5 do not vary significantly and all fall within therange of 3.76 to 3.96 on the 5-point Likert scale This indicates that The Coffee Housecoffee shop chain has shown a fairly attentive customer care system

d Descriptive statistics of observed variables in the Assurance factor

Table 2.7: Descriptive Statistics For The Assurance Factor

N Minimum Maximum Mean Std.Deviation