Chuyên đề tốt nghiệp: The impact of service quality on customer satisfaction in mitas company

NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES DEPARTMENT OF BUSINESS ENGLISH ---000---NGUYEN THI LINH THE IMPACT OF SERVICE QUALITY ON CUSTOMER SATISFACTION IN MITAS COMPANY

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NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES DEPARTMENT OF BUSINESS ENGLISH

-000 -NGUYEN THI LINH

THE IMPACT OF SERVICE QUALITY ON CUSTOMER

SATISFACTION IN MITAS COMPANY

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Nguyễn Thị Linh — 11192935 — Business English 61B

NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES DEPARTMENT OF BUSINESS ENGLISH

-000 -NGUYEN THI LINH

THE IMPACT OF SERVICE QUALITY ON CUSTOMER

SATISFACTION IN MITAS COMPANY

Supervisor: PhD Tran Thi Dan Huyen

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Secondly, special thanks went to Mr Nguyen Luong Han, the Director of Mitas

Ha Noi Technology Joint Stock Company, and the company's customers for theirtremendous help and cooperation in the questionnaires Their vital participationallowed me to carry out my project at their organization and kept me on the righttrack

Last but not least, my sincere gratitude went to all the lecturers in the Faculty of

Foreign Languages for their support and orientation over my 4-year course atNational Economics University Their devoted tutoring in all lessons provided

me with sufficient basic knowledge and theory in the business field and thefoundation for my graduation paper

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EXECUTIVE SUMMARY

In the fast-paced world of technology, competition is fierce among companiesthat provide technical solutions to customers The intense competition amongsuch companies in this space requires these companies to offer high-qualityservice and build a strong brand reputation Companies that can do these thingsare more likely to stand out in the market and achieve long-term success Servicequality has a significant impact on customer satisfaction By providing high-quality services, businesses can increase customer satisfaction, build trust andcredibility, and establish a positive reputation, all of which can lead to increasedrevenue and long-term success

The importance of customer satisfaction in the highly competitive businessmarket inspired the writer to conduct research with the aim of evaluating theeffect of service quality on customer satisfaction in Mitas company Thisacademic research aimed to investigate the tremendous influence of servicequality on overall customer satisfaction and suggest some _ supportiverecommendations to enhance customer satisfaction towards the service quality ofMitas company

Specifically speaking, the researcher created a questionnaire which compromised

20 questions in total and dispatched this questionnaire to 180 customers of Mitascompany After that, the data collected through this survey was analysedcarefully and thoroughly to provide a comprehensive analysis and findings.Based on the statistics analysed by SPSS 20, the researchers provided somerecommendations for Mitas company to manage and increase their customersatisfaction, build trust and credibility, and establish a positive reputation, all ofwhich could lead to increased revenue and long-term success

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LIST OF ABBREVIATIONS

ANOVA Analysis of Variance

AS Assurance

ASI Customers can trust staffs

AS2 Staffs are polite

AS3 Staffs have adequate knowledge to help customers

CS Customer satisfaction

CS1 I have a high level of satisfaction with the equipment provided

CS2 I have a high level of satisfaction with the credibility of service

EMI Staffs know what customers’ needs are

EM2 Staffs give customers individual attention

EM3 Staffs consider giving orientation about service and the cost

related to the service

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KMO Kaiser-Meyer-Olkin

Mitas company Mitas Ha Noi Technology Joint Stock Company

RL Reliability

RLI Keep customers’ record correctly

RL2 Provide service at the promised time

RL3 Inform any failure ahead of time

RP Responsiveness

RPI Employees provide timely service

RP2 Employees are inclined to provide help to customers

RP3 Employees are always available to respond to customer

requests

TA Tangibility

TAI The branch has modern equipment

TA2 The facilities have an attractive visual appearance

TA3 The staffs have a professional appearance

TVE Total Variance ExplainedVIF Variance Inflation Factor

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LIST OF TABLES

Table 1.1 Basic information about Mitas company (mitas.Vn) - 4Table 4.1 Gender eee 28Table 4.2 Working 0i ii: 18 28Table 4.3 Descriptive €8SUT€ 5 2G 2 311v TH TH ng ng ng 29Table 4.4 Reliability anaÌyS1S cv HH TH ng ng nh 34Table 4.5 KMO and Bartlett's Test G0 ng ng ngư 35Table 4.6 Total Variance Explained - «+ + + xxx ng kg 36Table 4.7 Rotated Component TTIAfT1X 5 + 3+ ‡ 3+ £+EEveeeeeereeeereess 37Table 4.8 Pearson COTTGÏ24fÏOHA - 4 5 19301930 91 9101 93119 ng ng ng nh 38

Table 4.9 Model SumimarryP - 5:2 Et2E‡EEEEEEEEEEEESESErrkrkerrrrkrrrrrkrre 39

Table 000.0 902/0 1 40Table 4.11 Regression Coefficients 5 <1 1319 9v ng 41

LIST OF FIGURES

Figure 1.1 Mitas company’s organizational structure (The author) 7Figure 2.1 The service ChaTaCf€TISẨICS -.- + << 1x11 9v ng re 14Figure 4.1 Tangibility anaÌÏyS1S - cv HH ng ng nh 30Figure 4.2 Reliability annaÌyS1S s6 k9 HH TH HH nh key 31Figure 4.3 Responsiveness analySis sgk kt 31Figure 4.4 Assurance afaÏYS1S - - sgk kkg 32Figure 4.5 Empathy anaÏyS1S c1 HS HH ng HH ng ng 32Figure 4.6 Customer satisfaction anaÏS1S - «cv sseiseserersereeee 33

1V

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TABLE OF CONTENTS

EXECUTIVE SUMMARY u csccscsscsssssscsssscssssccssssscssssscssessssesssssessecssssessssseees iLIST OF ABBREVIA THIONS s- << HO HH TH CC 0008900 iiLIST OF TABLES <5 < 5< < 5< 00 0 000008509650 ivLIST OF FIGURES << 5 << HH In n0 0 g0 g0 iv

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5 Organization of the r€S€aaFFCH .5 <5 <5 s9 9000900896 8840886 086 3CHAPTER 1: INTRODUCTION OF MITAS COMPANY - 4

1.2 Establishment history d- << 6S S99 9.8999 806088949889588968966 5

1.3 Company SÍFUCẦUTCC (5 9 99.0.0000 0040000940088906 886 61.4 Mitas company’s core business aCfÏVÏÏCS c 0c S119 99955 101.5 Mitas company’s vision, mission and core YaÌue s«<s«« 10CHAPTER 2: LITERATURE REV HE Y on HH ng ngan 13

2.3.1 Definition of CustOmer safiSƒACÍÍOH Ăn sree 19

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2.3.2 Importance Of CUStOMEY sqfiSƒACHOH Ă se 20

2.4 The impact of service quality on customer safisfacfion 212.5 Review of previous Studies 2-65 << G5 S9 9.9 9.96 0996088 6894896 21CHAPTER 3: RESEARCH METHODOLOGY 5s csss<<se 24CHAPTER 4: DATA ANALYSIS AND FINDINGS <<< 284.1 Background information of respond€nnfS -ss=<s==<se=ssees 28

4.2 Descriptive Measure G6 G5 499 9 9998999689998989688894899468966 29 4.3 Reliability amalysis f€Sf << G S5 9.9 9.6998895888908889469468666 33

4.4 Exploratory factor aniaÌSÌÏS o6 có s9 0.0 08 58986896 344.5 Pearson correlation analysis oœ- s5 5s 9 9.9.0 08 589565896 37

4.6 Multiple regression arnaÌYSÌÏS << << << <5 999.999 56989989859589566896 38 4.7 The impact of service quality on customer safisfaction 42

CHAPTER 5: RECOMMENDA TIONS - 5 <1 mem 445.1 Tangibili(y << 5 << HH 0900004004084 86 445.2 EImpatHhy oœGGG s 9 Họ TH 000000 160090694060890 45

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REEERENCES (GHI HC HH HH 000005009090 050 50APPENDIX 1

APPENDIX 2

VI

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INTRODUCTION

1 Rationales

In today’s world, with the development of new technology, our society is

becoming more and more prosperous The process of urbanization and

industrialization has changed the way we live Therefore, higher living standards

can lead to a higher level of consumer expectations, which can be both achallenge and an opportunity for businesses to innovate and meet the changingneeds of their customers

This trend is especially apparent in industries that are focused on innovation andtechnology As new products and services are introduced, customers may quicklycome to expect the latest and greatest features and capabilities, leading to higherexpectations for what these products should be able to do

In Vietnam, many companies are operating their business which providesservices related to trading technical machines and mechanic solutions to potentialcustomers When such businesses compete with each other for customers, theyare incentivized to improve their services to differentiate themselves from theircompetitors and satisfy more customers When businesses prioritize servicequality, they are more likely to create loyal customers who will return for repeatbusiness and refer their friends and family to the business This can help thebusiness to grow and succeed in the long term

Customer satisfaction is a crucial aspect of any business because it can directly

impact customer loyalty, repeat business, and brand reputation High levels of

customer satisfaction can lead to increased sales and revenue, while low levels ofcustomer satisfaction can result in lost business and a damaged brand reputation.Furthermore, service quality, which refers to the degree of excellence orsuperiority of the services offered by a business, is a key factor that can influencecustomer satisfaction When businesses provide high-quality services, customerscan be satisfied with their experience and more likely to return in the future

In summary, the research on the impact of service quality on customersatisfaction was essential for businesses to ensure that they could meet the needsand expectations of their customers and retain their customer base

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2 Research objectives

The research aimed to focus on two key variables, including customersatisfaction and service quality in Mitas company There were two main researchobjectives in this study

Firstly, the impact of service quality on customer satisfaction in Mitas companywas analysed carefully and thoroughly, which could help to identify areas forimprovement or potential strengths in the future This research aimed to helpMitas company understand the impact of the quality of services provided by abusiness on the level of satisfaction that customers experience By researchingthe contribution of service quality to customer satisfaction, businesses could gain

a comprehensive understanding of the determinants that influence customersatisfaction and the importance of providing high-quality services

Furthermore, the investigation of potential strategies for the management ofcustomer satisfaction by Mitas company was also a major focus of this research.This research could also provide insights into the specific aspects of servicequality that are most important to customers, enabling Mitas company to focustheir efforts and resources on improving customer satisfaction, leading to longersurvival

e What should be done to improve service quality in order to increase

customer satisfaction in Mitas company?

4 Scope of the research

Time scope: The data and figures were collected and analyzed from 2023 January

to 2023 March

Content scope: The research included 180 customers These customers whoparticipated in the survey worked in various working institutions, includingresearch institutions, domestic companies, and international companies

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They came from domestic and international companies, research institutions inVietnam and international entrepreneurs The research focused on thecontribution of service quality to customer satisfaction at Mitas company

The researcher decided to choose these customers because they had used theservice of Mitas company since 2023 January The research scope was limited

to the customer of Mitas company to provide valuable insights into the researchquestion

5 Organization of the research

The study consists of five chapters

Chapter 1: Introduction of Mitas company This part provided a clear and conciseoverview of the organization with its issues related to the research topic, keyterms, and definitions

Chapter 2: Literature review This part was used as a basis for the research whichprovided a comprehensive understanding of key terms, including service qualityand customer satisfaction Furthermore, it allowed the writer to summarize andsynthesize the existing research to identify gaps and limitations in the research

Chapter 3: Research methodology This part was the systematic process andtechniques used by researchers to conduct a study or investigation Itencompassed the overall design, approach, data collection, data analysis, and

interpretation of results in a research study

Chapter 4: Data analysis and findings This part was where the researcherpresented and interpreted the data that was collected during the research process.Moreover, the researcher communicated the results of the study and drewconclusions based on the data

Chapter 5: Recommendations This part included recommendations to solve theproblems related to the research topic and supportive suggestions for furtherstudy

Conclusion

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CHAPTER 1: INTRODUCTION OF MITAS COMPANY

This chapter brought about a brief overview of Mitas company, its history, andits services The introduction of Mitas company was meant to present acomprehensive and concise description of the company’s purpose and goals Italso highlighted the company’s unique selling points and differentiated it from itscompetitors

Address 81 Le Duc Tho, C'Land Building, Floor 5, Ha

Noi, Ha Noi Vietnam

Type of company Trading Company

Chief Executive Officer Mr Nguyen Luong Han

Start date March 12, 2018

Website mitas.vn

Email Address sales @mitas.vn

Table 1.1 Basic information about Mitas company (mitas.vn)

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1.2 Establishment history

Mitas Ha Noi Technology Joint Stock Company was founded on March 12,

2018, under the Business Registration Certificate issued by the Department ofPlanning and Investment of Ha Noi province ASIC Technology Consulting andServices Joint Stock Company's owners, who owned 45% of the shares, were thefoundation for the creation of Mitas company Thus, the organization had fullpermission to utilize the former company's capability

In 2018, Mitas company aimed to be one of the leading technology companieswhich provide technological solutions and scientific and technical equipment inthe Defense - Industry - Scientific Research and Training In 2019 Mitascompany focused on wholesaling electronic and telecommunications equipment

In 2020, the company started to provide customers with services related toinformation security and network security consulting, design, research, andproduct development

After five years of development and growth, the institution viewed its concept asthe cornerstone for its growth and direction: Solution + People To satisfycustomer needs, the company offered solution-based business products alongwith training and development programs for human resources that could helpfind and apply solutions This business company was highly confident in itsability to deliver cutting-edge technology solutions to meet customer needs in thefollowing sectors: education, national security, production, and life sciencebecause of its extensive experience in providing technology solutions to clientslocally and internationally

The company pays attention to the fact that quality is essential to a company'ssurvival in the modern business market Each technology solution's added value

is always the result of a team effort between seasoned engineers and domesticand international consultancy, and comprehensive, affordable, and efficient usersolutions All staffs prioritize the best solutions based on technology, investmentcosts, and after-sales quality They are confident that they can satisfy customerneeds because the company's collective personnel has a group of seasonedworkers who have completed numerous projects for research institutes, factories,and industries It is strictly necessary to supply consumers with solutions of thehighest quality Several equipment manufacturers have chosen Mitas company to

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be their official distributor for their products in the Vietnamese market Suchmanufacturers include LigNex1, NI, Telerad, Rohde & Schwarz, Anritsu, NSI-

MI, CST, Netscout, Chroma; Digi, Taylor, Haas, Tailift, Jing Day, Agma CNC,Takang CNC, Aristech Liensheng Also, Mitas is able to maintain the financialresources to successfully deploy their customers’ projects thanks to the backing

of eager investors

The business philosophy guiding the whole company values the rule of law,customer trust, and service quality For the benefit of its clients and partners,Mitas Corporation aspires to be a premier partner, equipment and solutionprovider The client's confidence and support are a significant source ofinspiration and a priceless resource for Mitas's business activities

1.3 Company structure

The company's hierarchical order is now organized in a hybrid model A hybridmodel of apparatus organization typically refers to a structure where thecompany combines different organizational structures to form a unique approachthat works best for the company In this case, the hybrid model is likely toinclude a mix of hierarchical and functional structures

The Board of Directors typically has the ultimate responsibility for the company's

strategic direction, financial management, and long-term planning They areusually elected by the company's shareholders, and they provide guidance andoversight to the executive management team Furthermore, the departmentswithin the company are responsible for carrying out specific managementfunctions related to their areas of expertise, such as finance, marketing,operations, and human resources The hybrid model is designed to create abalance between top-down control and decentralized decision-making, enabling

departments to operate with greater autonomy while ensuring that the company's

overall goals are being met

Overall, the hybrid model of apparatus organization is intended to provide thecompany with the best of both worlds: the structure and stability of a hierarchicalmodel, combined with the flexibility and adaptability of a functional model

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Education: Bachelor of Business Administration

Seniority: He has held the position of director since the company wasestablished

As the highest-ranking executive in a company, the CEO (Chief ExecutiveOfficer) has a broad range of responsibilities Firstly, he is in charge of settingthe strategic direction of the company and developing and communicating thecompany's vision, mission, and overall strategy Secondly, the CEO is typicallyresponsible for leading the executive management team, which includesoverseeing department heads and other senior executives Furthermore, he isoften the public face of the company and is responsible for representing thecompany to the media, government officials, and other stakeholders The CEOplays a critical role in setting the strategic direction of the company, managing its

financial performance, building relationships with stakeholders, and establishing

a positive work environment.

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Personnel Department

The personnel department is responsible for recruiting and hiring new

employees, as well as managing employee benefits, payroll, and training and

development programs

The personnel department performs a wide range of duties Firstly, thisdepartment is responsible for attracting and selecting new employees Thisinvolves posting job openings, screening resumes, conducting interviews, andmaking job offers Furthermore, this department manages employee benefits,including health insurance, retirement plans, and vacation time They also makesure that the organization is compliant with laws related to employee benefits.The department may also act as a mediator between employees andmanagement in the case of disputes or conflicts They may also be responsiblefor addressing employee concerns and ensuring that the workplace is a safe andrespectful environment

future financial performance This includes analyzing data, predicting trends

and patterns, and providing recommendations and proposals to seniormanagement Furthermore, it may conduct financial analysis to help seniormanagement make strategic business decisions This includes analyzing

financial data, creating financial models, and making recommendations based

on the analysis

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Marketing Department

The marketing department is responsible for promoting the products or servicesprovided by company and increasing brand awareness by utilising marketing

strategies that help the company meet its business goals

The marketing department's specific functions differ from one company to the

other This department may conduct market research to gain insights intocustomer needs, preferences, and behaviors This research can help thedepartment better understand the target audience and develop effective marketingcampaigns Secondly, it is responsible for developing the company's brandstrategy and ensuring that the brand is consistent across all marketing channels.This may include developing brand guidelines, creating marketing materials, and

managing the company's online presence Moreover, this department is

responsible for developing and executing digital marketing campaigns, includingsocial media marketing, email marketing, and search engine optimization Thismay include creating content, managing social media accounts, and monitoringwebsite analytics

Sales Department

The sales department is in charge of selling products or services to customers

while finding potential customers, strengthening relationships with them, andclosing sales

Firstly, the sales team is responsible for developing a sales strategy that alignswith the company's business goals This may include identifying target markets,developing sales goals, and determining the best channels for reaching potentialcustomers Secondly, it is responsible for managing the sales process, from initialcontact with the customer to closing the sale This may include managing thesales pipeline, providing quotes and proposals, and negotiating contracts Finally,the department may use analytics tools to track sales performance and identifyareas for improvement This may include tracking sales metrics such asconversion rates, deal size, and sales cycle length, as well as analyzing customerdata to identify trends and patterns

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1.4 Mitas company’s core business activities

Mitas Ha Noi Technology Joint Stock Company is a company operating in many

fields However, in recent years and the current period, the company has

provided the following services:

1.5

Vision

Providing technology consulting, research, development, and design of

high-frequency and ultra-high-frequency electricity-electronics

automation systems and integrated systems

Providing technical solutions - specific technology, with a focus on cyber

security

Providing digital signal processing, image processing, and FPGAsolutions and technology equipment

Providing solutions and equipment for mechanical technology, precision

machining, production automation, and special equipment maintenance

management.

Providing materials, components, accessories, and supporting tools in

mechanical, electrical-electronic high frequency, communications,

motorcycles, and biochemistry

Providing the service of repairing electronic and mechanical measuring

devices and manufacturing specialized mechanical products on demand

Providing information security and network security consulting, design,research, and product development

Providing simulation software and solutions for teaching majors in thecyber security

Mitas company’s vision, mission and core value

Mitas company aims to become Vietnam's leading provider of innovativetechnology solutions that help businesses achieve their full potential Thecompany is focused on providing solutions that go beyond just meeting theneeds of customers and help them achieve their full potential This vision is aguiding force for the company's long-term strategy and helps to motivate andalign employees around a common goal With this vision, Mitas companyalways wants to bring customers absolute satisfaction and trust

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Core value

" Humanity - Mind - Faith - Wisdom”

Each member of Mitas company is partially responsible for each product theymake Therefore, Mitas company is committed to creating the best products andbuilding a reputation for businesses

1.6 Issues related to the research topic

Customer satisfaction and service quality are two key factors that can greatlyimpact the success of any business In the highly competitive business market,companies need to focus on providing high-quality products and services,excellent customer service, personalized service, prompt service, consistentservice quality, and effective complaint resolution By prioritizing customersatisfaction, companies can improve customer loyalty, increase revenue, andgain a competitive advantage in the marketplace

Mitas company faced a lot of competition from its competitors in the business

of wholesaling technical equipment This company witnessed some commonissues related to service quality that can lead to decreased satisfaction levels.Firstly, customers expected high-quality products and services, and when thecompany failed to deliver, it could lead to dissatisfaction Poor service qualitycould include issues such as malfunctions, or inadequate performance

Furthermore, when this company provided poor service, such as beingunresponsive or unhelpful, it could lead to frustration and decreasedsatisfaction Besides that, long wait times could also be a significant issue for

customers, whether waiting on the phone, in line, or for an online response

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Customers had busy lives, and they expected prompt and efficient service.When wait times were long, it could lead to frustration and decreasedsatisfaction

In conclusion, service quality is a critical component of customer satisfaction.Companies that prioritize high-quality service can improve customer loyalty,increase revenue, and gain a competitive advantage in the marketplace Thisacademic research would focus on the wholesaling of electronic andtelecommunications equipment to research institutions, as well as domestic andforeign companies The writer aimed to analyse the impact of service quality oncustomer satisfaction and recommend some suggestions to enhance customersatisfaction towards service quality of Mitas company to ensure this company’slong-term survival

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CHAPTER 2: LITERATURE REVIEW

This chapter brought about a theoretical framework to analyse the correlationbetween service quality and overall customer satisfaction The theoreticalframework included a set of interconnected concepts that provided a way ofunderstanding and explaining the definition and characteristics of service andcustomer satisfaction This theoretical framework was based on existing theories,and recently published research findings related to the topic under investigation

by the writer It was used in this academic research to guide the development ofhypotheses, data collection, analysis, and findings This framework enabled the

writer to organise the study and analyse the data

2.1 Service

2.1.1 Definition of service

There is no complete definition of services because they are intangible,heterogeneous, and often co-created with the customer According to Kotler andArmstrong (2012), services are economic activities that provide various types ofutilities to customers, such as time, place, form, or psychological utilities Byproducing these different types of utilities, services can help customers achievetheir goals and satisfy their needs in various ways Services are often performed

by people or machines and can range from professional services such asconsulting and legal advice to personal services such as haircuts andhousecleaning

Messay (2012) stated that services are identifiable activities that are intangible innature, which means they cannot be seen, touched, or felt The main purpose ofthese activities is to provide satisfaction to customers, and they are usually themain object of a transaction Services are a central component of many businesstransactions with the aim of focusing on the activities that are performed toprovide satisfaction to customers

In a simple and straightforward definition of services, Zeithaml and Bitner (2003)

defined services as "deeds, processes, and performances" They highlighted thefact that services are typically characterized by actions rather than physicalproducts, and that the customer experience is often shaped by the interactionsbetween the service provider and the customer This definition also emphasized

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the importance of processes in delivering services, as service quality can beheavily influenced by the efficiency and effectiveness of the processes used todeliver the service

According to Gronroos (2000), services are "activities or series of activities ofmore or less intangible nature" that are provided as solutions to customerproblems This definition emphasized the idea that services are often co-createdthrough interactions between customers, service employees, physical resources,

goods, and systems Gronroos' definition provided a comprehensive view of services that takes into account the various factors that contribute to the creation

and delivery of high-quality services

2.1.2 Characteristics of service

According to Kotler (2006), there are four major characteristics of services,

including intangibility, inseparability, variability and perishability

Source: (Kotler and Armstrong, 2006:258)

Intangibility: According to Zeithmal et al (1985), the intangibility of services isrelated to the fact that services are often experienced as actions or performances,rather than physical products In general, the intangibility of services makes it

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more difficult for customers to evaluate their quality and value compared tophysical products This is because services are often customized to meet thespecific needs and preferences of individual customers, and their quality can be

heavily influenced by the interactions between the customer and the service

provider This can create a level of uncertainty for customers when makingpurchasing decisions However, the degree of tangibility of service can vary Forexample, some services may have a more tangible component, such as arestaurant meal, which can be evaluated based on the quality of the food, service,and atmosphere Other services may be more intangible, such as consulting orcoaching services, which can be more difficult to evaluate and may require a

higher level of trust in the service provider

Inseparability: The inseparability of services refers to the fact that services areoften produced and consumed at the same time and are inseparable from theservice provider This means that the quality of the service is heavily influenced

by the interactions between the service provider and the customer The idea of

inseparability highlights the important role that customers play in shaping the

performance and quality of the service Customers can provide feedback, makerequests, and influence the service provider's behavior in real-time, which canhave a significant impact on the quality of the service and the overall customer

experience

Variability: The high degree of variability in service delivery is a characteristic

of services that can be leveraged as a benefit and point of differentiation This isbecause the variability in service delivery allows for a high degree of flexibilityand customization of the service to meet the specific needs and preferences ofindividual customers The ability to customize and tailor the service to meetindividual customer needs can create a unique and personalized experience thatsets the service apart from competitors This can also create a higher level ofcustomer satisfaction and loyalty, as customers feel that their needs andpreferences are being prioritized and addressed However, the high degree ofvariability in service delivery can also create challenges for service providers.For example, it can be more difficult to standardize and control the quality of theservice, as each customer may require a unique approach or solution.Additionally, the high degree of variability in service delivery can make it more

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difficult to train and manage service providers, as they may need to adapt todifferent situations and customer needs

Perishability: The notion of perishability is an important characteristic ofservices that reflects their time-dependent and time-critical nature Unlikephysical products, services cannot be stored or carried forward to a future timeperiod Once a service has been offered, it cannot be reused or resold, and anyunused capacity or time cannot be reclaimed This means that services are highly

perishable and their value can diminish or disappear over time For example, a

hotel room that is not booked for a particular night cannot be used or sold on afuture night, and any revenue that could have been generated is lost forever.Similarly, a time slot with a medical specialist that goes unused cannot bereclaimed or resold, and any potential revenue is lost The perishability ofservices has important implications for service providers It requires serviceproviders to carefully manage capacity and time and to make strategic decisionsabout how to allocate and use these resources

2.2 Service quality

2.2.1 Definition of service quality

According to Ladhari (2009), service quality is an important tool for a firm'sstruggle to differentiate itself from its competitors In today's highly competitivebusiness environment, where products and services are often similar and easilyreplicated, service quality can be a key differentiator By providing high-qualityservices, firms can create a positive image and reputation that sets them apartfrom their competitors Customers are more likely to choose a firm thatconsistently delivers high-quality services and provides a superior customerexperience In addition to differentiation, service quality can also lead toincreased customer satisfaction, loyalty, and positive word-of-mouth

According to Zeithaml (1988), service quality is the result of a customer'scomparative analysis of the entire service experience, including theirexpectations, perceptions, and the service provider's promises In other words,customers evaluate the quality of a service based on a comparison between whatthey expected to receive and what they actually received, as well as how theservice compares to similar services offered by competitors This definitionsuggested that service quality is a complex concept that encompasses various

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dimensions, including reliability, responsiveness, assurance, empathy, andtangibles It also highlighted the importance of understanding the customer'sperspective and expectations in evaluating service quality

2.2.2 Service quality dimensions

According to Parasuraman (1988), service quality can be evaluated along five

dimensions

Tangibility: The tangibility dimension of service quality, as defined by Jabnounand Al-Tamimi (2003), refers to the physical aspects of the service, such as thefacilities and equipment used to provide the service, as well as the appearanceand behavior of the service personnel This includes the cleanliness, comfort, andvisual appeal of the service environment, as well as the quality and reliability of

the tools and equipment used to provide the service The appearance and

behavior of service personnel, such as their attire, grooming, and professionaldemeanor, can also have an impact on the customer's perception of servicequality A well-maintained and attractive physical environment, along withprofessional and attentive service personnel, can help to create a positive firstimpression and establish trust with customers, which can lead to greatersatisfaction and loyalty

Reliability: Service reliability, which refers to the ability of the service provider

to perform the promised service dependably and accurately, is critical tocustomer satisfaction and loyalty A reliable service is one that consistently meets

or exceeds customer expectations, without errors or delays This can help toestablish trust with customers and build a strong reputation for the serviceprovider Managers should prioritize building a "do-it-right-first" attitude amongservice personnel, in order to improve service reliability This means focusing ongetting things right the first time, rather than relying on correcting mistakes afterthe fact Service managers can achieve this by providing appropriate training andresources to service personnel, establishing clear standards and procedures forservice delivery, and incentivizing and rewarding reliable performance

Responsiveness: Responsiveness, as defined by Berry et al (2009), refers to the

process in which service providers react quickly and positively to customer

problems or inquiries within a given time frame This dimension of service

quality is primarily perceived through the people aspect of service quality, as it

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depends on the willingness and ability of service staff to respond promptly andeffectively to customer needs In order to enhance responsiveness, serviceproviders should focus on providing timely and effective responses to customer

inquiries or problems This can involve providing customers with clear and

accurate information about the service being offered, addressing their concerns orcomplaints in a timely and empathetic manner, and providing follow-up support

or assistance as needed Service providers should also establish clear proceduresand policies for addressing customer inquiries or complaints, and provideappropriate training and resources to service staff to ensure they are able torespond effectively

Assurance: According to Khan and Fasih (2014), the process of acquiredknowledge being showcased by service staff during service delivery can behighly assuring to customers This means that when service providersdemonstrate their expertise, knowledge, and professionalism while interactingwith customers, it can increase customer confidence and trust in the service beingdelivered This can be achieved by providing service staff with appropriatetraining and development to acquire the necessary knowledge and skills to

perform their job effectively This can be particularly important in serviceindustries where customers may have limited knowledge or expertise in the

service being provided, such as healthcare, financial services, or legal services.This dimension refers to the knowledge and courtesy of the service providers, aswell as their ability to inspire trust and confidence in the customer

Empathy: Khan and Fasih (2014) stated that empathy is the ability of service

providers to pay attention to individual customer problems and demands, and toaddress these issues effectively This dimension of service quality is primarilyperceived through the people aspect of service quality, as it depends on theability of service staff to listen to and understand the unique needs and concerns

of individual customers To enhance empathy, service providers should focus ondeveloping a customer-centric approach to service delivery, which prioritizes theneeds and concerns of individual customers This can involve training servicestaff to actively listen to and empathize with customers, to provide personalizedattention and support, and to offer customized solutions to individual customer

problems Service providers can also use technology and other tools to gather

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customer feedback and analyze customer data, which can help to identify specificareas where improvements can be made to enhance customer empathy

2.2.3 Service quality model

"SERVQUAL" is a widely recognized model for measuring service quality,developed by A Parasuraman, Valarie A Zeithaml, and Leonard L Berry in

1988 The model proposes that service quality can be evaluated along five

dimensions, which are:

Tangibility: This dimension refers to the physical aspects of the service, such asthe appearance of the service environment, the equipment used to provide theservice, and the appearance and behavior of service personnel

Reliability: This dimension refers to the ability of the service provider toperform the promised service dependably and accurately, without errors ordelays

Responsiveness: This dimension refers to the willingness of the service provider

to help customers promptly and to provide prompt service

Assurance: This dimension refers to the knowledge and courtesy of the serviceproviders, as well as their ability to inspire trust and confidence in the customer

Empathy: This dimension refers to the caring and individualized attention theservice provider gives to the customer and their ability to understand thecustomer's needs and feelings

The SERVQUAL model involves surveying customers and asking them to ratethe service quality they received on each of these dimensions, using a 5-pointLikert scale The scores can then be used to identify areas where service quality

is lacking and to develop strategies for improvement

2.3 Customer satisfaction

2.3.1 Definition of customer satisfaction

According to Rigopoulou et al (2008), customer satisfaction refers to the state ofmind or attitude that customers have towards a company or its products orservices when their expectations have been met or exceeded When customers’expectations are met or exceeded, they are likely to feel positive emotionstowards the company, such as happiness, contentment, or fulfilment

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This positive emotional state can translate into increased loyalty, repeat business,and positive word-of-mouth recommendations to others In contrast, if acustomer's expectations are not met, they may feel negative emotions towards thecompany, such as frustration, disappointment, or anger, which can lead todecreased loyalty, negative word-of-mouth, and reduced business

Bateson and Hoffman (1999) stated that customer satisfaction is influenced by avariety of factors, including the five dimensions of service quality: reliability,responsiveness, assurance, empathy, and tangibles These factors can all affectthe customer's perception of the service experience and their overall level ofsatisfaction To enhance customer satisfaction, service providers must payattention to all of these factors and strive to provide a high-quality serviceexperience that meets or exceeds customer expectations across all dimensions ofservice quality, as well as taking into account the various additional factors thatmay impact the customer's perception of the service

2.3.2 Importance of customer satisfaction

According to Hayes (2008), the analysis of customers’ satisfaction levels andtheir requirements will assist the business institutions to find out the bestdirection in which the company needs to go on In today's highly competitivemarket, customers are becoming increasingly sophisticated in their expectationsand demands for high-quality services Therefore, it is essential for companies tocontinuously monitor their customers’ satisfaction levels and understand theirrequirements in order to stay competitive and meet the changing needs of the

market

By gathering feedback from customers about their experiences with thecompany's products or services, companies can identify areas where they may befalling short and make improvements to enhance the quality of their services.This can involve taking steps to address specific customer complaints orconcerns, as well as proactively identifying opportunities to exceed customerexpectations and provide a superior service experience

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2.4 The impact of service quality on customer satisfaction

Siddiqi (2011) stated that there is a well-established positive relationship betweenservice quality attributes, customer satisfaction, and customer loyalty in variousservice industries, including retail banking When customers perceive a highlevel of service quality across multiple dimensions, such as _ reliability,responsiveness, assurance, empathy, and tangibles, they are more likely to besatisfied with their overall service experience Customer satisfaction, in turn, isstrongly correlated with customer loyalty, as satisfied customers are more likely

to continue doing business with the same service provider and recommend theprovider to others In contrast, dissatisfied customers are more likely to switch to

a competitor and may also share their negative experiences with others, whichcan harm the provider's reputation

Therefore, for service providers in the field of wholesaling technical machines, it

is critical to ensure that they are providing a high level of service quality acrossall dimensions in order to foster customer satisfaction and loyalty This mayinvolve investing in training and development for service personnel, improvingservice delivery processes, enhancing physical facilities and equipment, andgathering and acting on customer feedback to continually improve the serviceexperience

2.5 Review of previous studies

Serveral studies provided valuable insights into the relationship between servicequality and customer satisfaction in different cultural and market contexts,highlighting the universal importance of service quality in shaping customersatisfaction

In the review of previous studies, several research articles conducted in Vietnamwere analyzed to investigate the impact of service quality on customersatisfaction in different industries, including banking, hospitality, and airline

The first study by Nguyen and Nguyen (2019) focused on the Vietnamesebanking sector and used mediation analysis to examine the relationship betweenservice quality dimensions (reliability, responsiveness, assurance, empathy, andtangibles) and customer satisfaction The findings revealed that service quality

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had a significant positive impact on customer satisfaction and that customersatisfaction was partially mediated by service quality dimensions

Similarly, Tran and Le (2017) conducted a study in the hotel industry in Vietnam

and found that service quality, as measured by the same dimensions, had asignificant positive impact on customer satisfaction The study also emphasizedthe importance of staff competence and communication skills as key factorsinfluencing service quality and customer satisfaction in the hotel industry

Ho and Chen (2018) explored the impact of service quality on customersatisfaction in the airline industry in Vietnam and found that service qualitydimensions significantly influenced customer satisfaction The study alsohighlighted the significance of service delivery process and service environment

in shaping customer satisfaction in the context of the Vietnamese airline industry

Another study by Nguyen, Pham, and Huynh (2016) focused on a retail bank inVietnam and found that service quality dimensions, including reliability,responsiveness, assurance, empathy, and tangibles, significantly influencedcustomer satisfaction The study also revealed a positive correlation betweencustomer satisfaction and customer loyalty, emphasizing the importance ofservice quality in fostering customer loyalty in the Vietnamese retail banking

sector.

These studies collectively suggested a positive relationship between servicequality and customer satisfaction in Vietnam, across various industries Theyhighlighted the importance of delivering high-quality services to enhancecustomer satisfaction in the Vietnamese context

Furthermore, a review of some international studies revealed the significance ofservice quality in shaping customer satisfaction and loyalty in various globalmarkets

Aman (2008), conducted a thesis which focused on the effects of the servicedelivery process and service quality on customer satisfaction in the context ofEEPCO's customer service centers in Bahir Dar town The study used a casestudy approach to examine the factors that contributed to customer satisfaction.The findings of the study could be valuable for improving the service delivery

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process and service quality of EEPCO's customer service centers, ultimatelyleading to higher levels of customer satisfaction

Moreover, Daniel O Auka (2012) examined the relationship between service

quality, customer satisfaction, and perceived value among customers ofcommercial banks in Nakuru Municipality, Kenya The results suggested thatthere was a positive and significant association between service quality andcustomer satisfaction, which indicated that customers who perceived higherlevels of service quality were more likely to be satisfied with their banking

experience Additionally, this study indicated that service quality accounted for a

significant portion (19.8%) of the variance in customer satisfaction, suggestingthat it was an important factor in determining customer satisfaction in thecommercial banking sector in Nakuru Municipality

Additionally, Liu, Li, and Wang (2018) investigated the impact of service quality

on customer satisfaction and loyalty in both online and offline markets in China.The findings revealed that service quality dimensions significantly influencedcustomer satisfaction and loyalty in both online and offline markets The studyhighlighted the importance of service quality in shaping customer satisfactionand loyalty in the Chinese market, which has implications for businessesoperating in global markets

Furthermore, Ndubisi (2007) examined the relationship between service quality,customer satisfaction, and loyalty in the Australian context The findingsrevealed that service quality dimensions had a significant positive impact oncustomer satisfaction and loyalty The study also proposed a research agenda forfurther investigating the impact of service quality on customer satisfaction andloyalty in the Australian market, which could provide insights applicable to otherglobal markets as well

In conclusion, the theoretical framework was drawn from a variety of definitions,such as service, service quality, and customer satisfaction It included a cleardefinition of key concepts and a logical explanation of how service quality andcustomer satisfaction are related to each other This chapter also provided anexplanation of how the framework will be used to guide the research Thetheoretical framework would be supported by data observation and analysis inthe next chapter

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CHAPTER 3: RESEARCH METHODOLOGY

This chapter encompassed the overall strategy and plan for conducting research,including the design, data collection, data analysis, and interpretation of findings.The research methodology provided a framework for conducting research in arigorous and systematic manner to ensure that the research findings are reliable,

valid, and generalizable

In this study, the impact of service quality on customer satisfaction wasinvestigated The research methodology involved a series of steps that arecarefully planned and executed to ensure the reliability, validity, and credibility

of research findings There were six key steps of research methodology,including thesis overview, identifying the research problem, developing atheoretical framework and research model, data collection, data analysis and

findings, and recommendations

The first step in research methodology was to provide a comprehensive overview

of the thesis or research study This included a brief introduction to the researchtopic, the research question or problem, and the significance of the study Thethesis overview provided the context for the entire research process and aroadmap for the reader to understand the purpose and direction of the study

The next step in research methodology was to identify the research problem orresearch question The research problem should be clearly defined, specific, andrelevant to the field of study because it provided the foundation for the researchand guided the entire research process In this research, the impact of servicequality on customer satisfaction in Mitas company was carefully analyzed for

further improvements

Once the research problem is identified, the next step was to develop a theoreticalframework and research model The theoretical framework provided a conceptualframework for the study, incorporating existing theories, concepts, and modelsthat are relevant to the research problem It helpsed to establish a solid theoreticalfoundation for the study and guided the development of the research model Theresearch model outlined the relationships between the variables being studied andprovided a visual representation of the proposed research design In this study,there are five independent variables, including tangibility, reliability,

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Tiêu đề	The Impact Of Service Quality On Customer Satisfaction In Mitas Company
Tác giả	Nguyen Thi Linh
Người hướng dẫn	PhD. Tran Thi Dan Huyen
Trường học	National Economics University
Chuyên ngành	Business English
Thể loại	Graduation Project
Năm xuất bản	2023
Thành phố	Ha Noi

Định dạng
Số trang	66
Dung lượng	14,14 MB