Chuyên đề tốt nghiệp: 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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I would like to express my sincere gratitude to the following individuals who offered both direct and indirect assistance towards the successful completion of

my research.

Firstly, I would like to thank my professional supervisor, PhD Tran Thi Dan Huyen Her necessary advice and guidance instructed and supported me immensely to keep my progress on track Without her necessary and helpful instruction, I would be unable to determine the best way to approach this graduation paper and successfully complete my research.

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 their tremendous help and cooperation in the questionnaires Their vital participation

allowed me to carry out my project at their organization and kept me on the right track.

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 at National Economics University Their devoted tutoring in all lessons provided me with sufficient basic knowledge and theory in the business field and the foundation for my graduation paper.

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EXECUTIVE SUMMARY

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

The importance of customer satisfaction in the highly competitive business market inspired the writer to conduct research with the aim of evaluating the effect of service quality on customer satisfaction in Mitas company This academic research aimed to investigate the tremendous influence of service quality on overall customer satisfaction and suggest some _ supportive recommendations to enhance customer satisfaction towards the service quality of Mitas company.

Specifically speaking, the researcher created a questionnaire which compromised 20 questions in total and dispatched this questionnaire to 180 customers of Mitas company After that, the data collected through this survey was analysed carefully and thoroughly to provide a comprehensive analysis and findings Based on the statistics analysed by SPSS 20, the researchers provided some recommendations for Mitas company to manage and increase their customer

satisfaction, build trust and credibility, and establish a positive reputation, all of which 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

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 Explained VIF Variance Inflation Factor

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LIST OF TABLES

Table 1.1 Basic information about Mitas company (mitas.Vn) - 4 Table 4.1 Gender eee 28 Table 4.2 Working 0i ii: 18 28 Table 4.3 Descriptive €8SUT€ 5 2G 2 311v TH TH ng ng ng 29 Table 4.4 Reliability anaÌyS1S cv HH TH ng ng nh 34 Table 4.5 KMO and Bartlett's Test G0 ng ng ngư 35 Table 4.6 Total Variance Explained - «+ + + xxx ng kg 36 Table 4.7 Rotated Component TTIAfT1X 5 + 3+ ‡ 3+ £+EEveeeeeereeeereess 37 Table 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 40 Table 4.11 Regression Coefficients 5 <1 1319 9v ng 41

LIST OF FIGURES

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

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TABLE OF CONTENTS

EXECUTIVE SUMMARY u csccscsscsssssscsssscssssccssssscssssscssessssesssssessecssssessssseees i LIST OF ABBREVIA THIONS s- << HO HH TH CC 0008900 ii 4 Scope of the research o G5 5 5 Họ 000000800 2 5 Organization of the r€S€aaFFCH .5 <5 <5 s9 9000900896 8840886 086 3 CHAPTER 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 6 1.4 Mitas company’s core business aCfÏVÏÏCS c 0c S119 99955 10 1.5 Mitas company’s vision, mission and core YaÌue s«<s«« 10 CHAPTER 2: LITERATURE REV HE Y on HH ng ngan 13

2.1 S€TVĨC€ co HH HỌC HH 000100 400059605009 080 13

2.1.1 Definition Of S€TVIC€ ĂẶ.G KT HH, 13

2.1.2 Characteristics Of S€TVÏC€ Ă Ăn ereu 14

2.2 Service Quality 0G G5 6 <9 9 99.894 0894.099809080940889489840899408996 16

2.2.1 Definition of Service QHQÏfV Gv rey 16 2.2.2 Service Quality AiMeNsions Ă SG ket 17 2.2.3 Service Quality IHOdÌ€Ï, SG HH kg, 19 2.3 Customer safÏSfaCfÏOT G5 Ăn TH 0000080896086 19 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 21 2.5 Review of previous Studies 2-65 << G5 S9 9.9 9.96 0996088 6894896 21 CHAPTER 3: RESEARCH METHODOLOGY 5s csss<<se 24 CHAPTER 4: DATA ANALYSIS AND FINDINGS <<< 28 4.1 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 34 4.5 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 44

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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 a challenge and an opportunity for businesses to innovate and meet the changing needs of their customers.

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

In Vietnam, many companies are operating their business which provides services related to trading technical machines and mechanic solutions to potential customers When such businesses compete with each other for customers, they are incentivized to improve their services to differentiate themselves from their competitors and satisfy more customers When businesses prioritize service quality, they are more likely to create loyal customers who will return for repeat business and refer their friends and family to the business This can help the business 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 of customer satisfaction can result in lost business and a damaged brand reputation Furthermore, service quality, which refers to the degree of excellence or

superiority of the services offered by a business, is a key factor that can influence customer satisfaction When businesses provide high-quality services, customers can be satisfied with their experience and more likely to return in the future.

In summary, the research on the impact of service quality on customer satisfaction was essential for businesses to ensure that they could meet the needs and 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 customer satisfaction and service quality in Mitas company There were two main research objectives in this study.

Firstly, the impact of service quality on customer satisfaction in Mitas company was analysed carefully and thoroughly, which could help to identify areas for improvement or potential strengths in the future This research aimed to help Mitas company understand the impact of the quality of services provided by a business on the level of satisfaction that customers experience By researching the contribution of service quality to customer satisfaction, businesses could gain a comprehensive understanding of the determinants that influence customer satisfaction and the importance of providing high-quality services.

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

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 who participated in the survey worked in various working institutions, including research institutions, domestic companies, and international companies.

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They came from domestic and international companies, research institutions in Vietnam and international entrepreneurs The research focused on the contribution of service quality to customer satisfaction at Mitas company.

The researcher decided to choose these customers because they had used the service of Mitas company since 2023 January The research scope was limited to the customer of Mitas company to provide valuable insights into the research question.

5 Organization of the research The study consists of five chapters.

Chapter 1: Introduction of Mitas company This part provided a clear and concise overview of the organization with its issues related to the research topic, key terms, and definitions.

Chapter 2: Literature review This part was used as a basis for the research which provided a comprehensive understanding of key terms, including service quality

and customer satisfaction Furthermore, it allowed the writer to summarize and synthesize the existing research to identify gaps and limitations in the research.

Chapter 3: Research methodology This part was the systematic process and techniques used by researchers to conduct a study or investigation It encompassed 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 researcher presented and interpreted the data that was collected during the research process Moreover, the researcher communicated the results of the study and drew

conclusions based on the data.

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

Conclusion.

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CHAPTER 1: INTRODUCTION OF MITAS COMPANY

This chapter brought about a brief overview of Mitas company, its history, and its services The introduction of Mitas company was meant to present a comprehensive and concise description of the company’s purpose and goals It also highlighted the company’s unique selling points and differentiated it from its competitors.

1.1 Overview

In short, Mitas Ha Noi Technology Joint Stock Company, which is called Mitas company, is explicated via information presented in Table 1.1:

Company name Mitas Ha Noi Technology Joint Stock Company

Phone number +84 24 38585111

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 of Planning and Investment of Ha Noi province ASIC Technology Consulting and Services Joint Stock Company's owners, who owned 45% of the shares, were the foundation for the creation of Mitas company Thus, the organization had full permission to utilize the former company's capability.

In 2018, Mitas company aimed to be one of the leading technology companies which provide technological solutions and scientific and technical equipment in the Defense - Industry - Scientific Research and Training In 2019 Mitas company focused on wholesaling electronic and telecommunications equipment In 2020, the company started to provide customers with services related to information security and network security consulting, design, research, and product development.

After five years of development and growth, the institution viewed its concept as the cornerstone for its growth and direction: Solution + People To satisfy customer needs, the company offered solution-based business products along with training and development programs for human resources that could help find and apply solutions This business company was highly confident in its ability to deliver cutting-edge technology solutions to meet customer needs in the following sectors: education, national security, production, and life science because of its extensive experience in providing technology solutions to clients

locally and internationally.

The company pays attention to the fact that quality is essential to a company's survival in the modern business market Each technology solution's added value is always the result of a team effort between seasoned engineers and domestic and international consultancy, and comprehensive, affordable, and efficient user solutions All staffs prioritize the best solutions based on technology, investment costs, and after-sales quality They are confident that they can satisfy customer needs because the company's collective personnel has a group of seasoned workers who have completed numerous projects for research institutes, factories, and industries It is strictly necessary to supply consumers with solutions of the highest quality Several equipment manufacturers have chosen Mitas company to

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be their official distributor for their products in the Vietnamese market Such manufacturers 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 financial resources 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 solution provider The client's confidence and support are a significant source of

inspiration 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 hybrid model of apparatus organization typically refers to a structure where the company combines different organizational structures to form a unique approach that works best for the company In this case, the hybrid model is likely to include 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 are usually elected by the company's shareholders, and they provide guidance and oversight to the executive management team Furthermore, the departments within the company are responsible for carrying out specific management functions related to their areas of expertise, such as finance, marketing, operations, and human resources The hybrid model is designed to create a balance 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 the company with the best of both worlds: the structure and stability of a hierarchical model, combined with the flexibility and adaptability of a functional model.

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=E1242006101245U HR Manager le Chief AccountManager

Sales Account | | Marketing | | AdministrativeManager 1 HR Staff Staff Accountant staff

Figure 1.1 Mitas company’s organizational structure (The author) Director

Full name: Nguyen Luong Han

Tel: 0975208888

Education: Bachelor of Business Administration

Seniority: He has held the position of director since the company was established.

As the highest-ranking executive in a company, the CEO (Chief Executive Officer) has a broad range of responsibilities Firstly, he is in charge of setting the strategic direction of the company and developing and communicating the company's vision, mission, and overall strategy Secondly, the CEO is typically responsible for leading the executive management team, which includes overseeing department heads and other senior executives Furthermore, he is often the public face of the company and is responsible for representing the company to the media, government officials, and other stakeholders The CEO plays 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, this department is responsible for attracting and selecting new employees This involves posting job openings, screening resumes, conducting interviews, and making job offers Furthermore, this department manages employee benefits, including health insurance, retirement plans, and vacation time They also make sure that the organization is compliant with laws related to employee benefits The department may also act as a mediator between employees and management in the case of disputes or conflicts They may also be responsible for addressing employee concerns and ensuring that the workplace is a safe and respectful environment.

Financial Department

The financial department is in charge of managing the financial resources of the organization while ensuring that financial information is accurate, timely, and

Some specific functions of a financial department may include accounting, budgeting and forecasting, and financial analysis Firstly, this department is responsible for managing the company's financial transactions and maintaining accurate financial records This includes managing accounts payable and receivable, reconciling bank statements, and generating financial reports.

Secondly, it may create and manage the company's budget, as well as predict

future financial performance This includes analyzing data, predicting trends

and patterns, and providing recommendations and proposals to senior management Furthermore, it may conduct financial analysis to help senior management 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 services provided 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 into customer needs, preferences, and behaviors This research can help the department better understand the target audience and develop effective marketing campaigns Secondly, it is responsible for developing the company's brand strategy 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, including social media marketing, email marketing, and search engine optimization This may include creating content, managing social media accounts, and monitoring website analytics.

Sales Department

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

while finding potential customers, strengthening relationships with them, and closing sales.

Firstly, the sales team is responsible for developing a sales strategy that aligns with the company's business goals This may include identifying target markets, developing sales goals, and determining the best channels for reaching potential customers Secondly, it is responsible for managing the sales process, from initial contact with the customer to closing the sale This may include managing the sales pipeline, providing quotes and proposals, and negotiating contracts Finally, the department may use analytics tools to track sales performance and identify areas for improvement This may include tracking sales metrics such as conversion rates, deal size, and sales cycle length, as well as analyzing customer data 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:

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

Providing digital signal processing, image processing, and FPGA solutions and technology equipment.

Providing solutions and equipment for mechanical technology, precision

machining, production automation, and special equipment maintenance

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 the cyber security

Mitas company’s vision, mission and core value

Mitas company aims to become Vietnam's leading provider of innovative technology solutions that help businesses achieve their full potential The company is focused on providing solutions that go beyond just meeting the needs of customers and help them achieve their full potential This vision is a guiding force for the company's long-term strategy and helps to motivate and align employees around a common goal With this vision, Mitas company always wants to bring customers absolute satisfaction and trust.

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“Providing the best solutions and services to meet customers' needs and expectations, assisting you in achieving your long-term business and production

This mission statement outlines the core purpose and values of a company It describes the company's fundamental reason for being and the principles that guide its decisions and actions This mission serves as a guiding principle for the company's decisions and actions, and it helps to communicate the company's purpose and values to its stakeholders.

Core value

" Humanity - Mind - Faith - Wisdom”

Each member of Mitas company is partially responsible for each product they make Therefore, Mitas company is committed to creating the best products and building a reputation for businesses.

1.6 Issues related to the research topic

Customer satisfaction and service quality are two key factors that can greatly impact 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, consistent service quality, and effective complaint resolution By prioritizing customer satisfaction, companies can improve customer loyalty, increase revenue, and gain 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 common issues related to service quality that can lead to decreased satisfaction levels Firstly, customers expected high-quality products and services, and when the

company failed to deliver, it could lead to dissatisfaction Poor service quality could include issues such as malfunctions, or inadequate performance.

Furthermore, when this company provided poor service, such as being unresponsive or unhelpful, it could lead to frustration and decreased satisfaction 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 decreased

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 This academic research would focus on the wholesaling of electronic and telecommunications equipment to research institutions, as well as domestic and foreign companies The writer aimed to analyse the impact of service quality on customer satisfaction and recommend some suggestions to enhance customer satisfaction towards service quality of Mitas company to ensure this company’s long-term survival.

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CHAPTER 2: LITERATURE REVIEW

This chapter brought about a theoretical framework to analyse the correlation between service quality and overall customer satisfaction The theoretical framework included a set of interconnected concepts that provided a way of understanding and explaining the definition and characteristics of service and

customer 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 of hypotheses, 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 and

Armstrong (2012), services are economic activities that provide various types of utilities to customers, such as time, place, form, or psychological utilities By producing these different types of utilities, services can help customers achieve their goals and satisfy their needs in various ways Services are often performed by people or machines and can range from professional services such as consulting and legal advice to personal services such as haircuts and housecleaning.

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

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

defined services as "deeds, processes, and performances" They highlighted the fact that services are typically characterized by actions rather than physical products, and that the customer experience is often shaped by the interactions between 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 be heavily influenced by the efficiency and effectiveness of the processes used to

deliver the service.

According to Gronroos (2000), services are "activities or series of activities of more or less intangible nature" that are provided as solutions to customer problems This definition emphasized the idea that services are often co-created through 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 is related 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 to physical products This is because services are often customized to meet the specific 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 making purchasing decisions However, the degree of tangibility of service can vary For

example, some services may have a more tangible component, such as a restaurant meal, which can be evaluated based on the quality of the food, service,

and atmosphere Other services may be more intangible, such as consulting or coaching 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 are often produced and consumed at the same time and are inseparable from the service 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, make requests, and influence the service provider's behavior in real-time, which can have a significant impact on the quality of the service and the overall customer

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 is because the variability in service delivery allows for a high degree of flexibility and customization of the service to meet the specific needs and preferences of individual customers The ability to customize and tailor the service to meet individual customer needs can create a unique and personalized experience that sets the service apart from competitors This can also create a higher level of customer satisfaction and loyalty, as customers feel that their needs and preferences are being prioritized and addressed However, the high degree of

variability in service delivery can also create challenges for service providers For example, it can be more difficult to standardize and control the quality of the

service, 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 to different situations and customer needs.

Perishability: The notion of perishability is an important characteristic of services that reflects their time-dependent and time-critical nature Unlike physical products, services cannot be stored or carried forward to a future time period Once a service has been offered, it cannot be reused or resold, and any unused 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 a future night, and any revenue that could have been generated is lost forever Similarly, a time slot with a medical specialist that goes unused cannot be reclaimed or resold, and any potential revenue is lost The perishability of

services has important implications for service providers It requires service providers to carefully manage capacity and time and to make strategic decisions

about 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's struggle to differentiate itself from its competitors In today's highly competitive business environment, where products and services are often similar and easily replicated, service quality can be a key differentiator By providing high-quality services, firms can create a positive image and reputation that sets them apart from their competitors Customers are more likely to choose a firm that consistently delivers high-quality services and provides a superior customer experience In addition to differentiation, service quality can also lead to increased customer satisfaction, loyalty, and positive word-of-mouth.

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

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dimensions, including reliability, responsiveness, assurance, empathy, and tangibles It also highlighted the importance of understanding the customer's perspective and expectations in evaluating service quality.

2.2.2 Service quality dimensions

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

Tangibility: The tangibility dimension of service quality, as defined by Jabnoun and Al-Tamimi (2003), refers to the physical aspects of the service, such as the facilities and equipment used to provide the service, as well as the appearance and behavior of the service personnel This includes the cleanliness, comfort, and visual 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 professional demeanor, can also have an impact on the customer's perception of service quality A well-maintained and attractive physical environment, along with professional and attentive service personnel, can help to create a positive first impression and establish trust with customers, which can lead to greater satisfaction and loyalty.

Reliability: Service reliability, which refers to the ability of the service provider to perform the promised service dependably and accurately, is critical to customer satisfaction and loyalty A reliable service is one that consistently meets or exceeds customer expectations, without errors or delays This can help to establish trust with customers and build a strong reputation for the service provider Managers should prioritize building a "do-it-right-first" attitude among service personnel, in order to improve service reliability This means focusing on getting things right the first time, rather than relying on correcting mistakes after the fact Service managers can achieve this by providing appropriate training and resources to service personnel, establishing clear standards and procedures for

service 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 and effectively to customer needs In order to enhance responsiveness, service providers 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 or complaints in a timely and empathetic manner, and providing follow-up support or assistance as needed Service providers should also establish clear procedures and policies for addressing customer inquiries or complaints, and provide appropriate training and resources to service staff to ensure they are able to respond effectively.

Assurance: According to Khan and Fasih (2014), the process of acquired knowledge being showcased by service staff during service delivery can be highly assuring to customers This means that when service providers demonstrate their expertise, knowledge, and professionalism while interacting with customers, it can increase customer confidence and trust in the service being delivered This can be achieved by providing service staff with appropriate training and development to acquire the necessary knowledge and skills to

perform their job effectively This can be particularly important in service industries 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, as well 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 to address these issues effectively This dimension of service quality is primarily perceived through the people aspect of service quality, as it depends on the ability of service staff to listen to and understand the unique needs and concerns of individual customers To enhance empathy, service providers should focus on developing a customer-centric approach to service delivery, which prioritizes the needs and concerns of individual customers This can involve training service staff to actively listen to and empathize with customers, to provide personalized attention 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 specific areas 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 as the appearance of the service environment, the equipment used to provide the service, and the appearance and behavior of service personnel.

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

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 service providers, as well as their ability to inspire trust and confidence in the customer Empathy: This dimension refers to the caring and individualized attention the

service provider gives to the customer and their ability to understand the customer's needs and feelings.

The SERVQUAL model involves surveying customers and asking them to rate the service quality they received on each of these dimensions, using a 5-point Likert 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 of mind or attitude that customers have towards a company or its products or services when their expectations have been met or exceeded When customers’ expectations are met or exceeded, they are likely to feel positive emotions towards 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 a customer's expectations are not met, they may feel negative emotions towards the company, such as frustration, disappointment, or anger, which can lead to decreased loyalty, negative word-of-mouth, and reduced business.

Bateson and Hoffman (1999) stated that customer satisfaction is influenced by a variety of factors, including the five dimensions of service quality: reliability, responsiveness, assurance, empathy, and tangibles These factors can all affect

the customer's perception of the service experience and their overall level of satisfaction To enhance customer satisfaction, service providers must pay attention to all of these factors and strive to provide a high-quality service experience that meets or exceeds customer expectations across all dimensions of service quality, as well as taking into account the various additional factors that may 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 and their requirements will assist the business institutions to find out the best direction in which the company needs to go on In today's highly competitive market, customers are becoming increasingly sophisticated in their expectations and demands for high-quality services Therefore, it is essential for companies to continuously monitor their customers’ satisfaction levels and understand their requirements in order to stay competitive and meet the changing needs of the

By gathering feedback from customers about their experiences with the company's products or services, companies can identify areas where they may be falling short and make improvements to enhance the quality of their services This can involve taking steps to address specific customer complaints or concerns, as well as proactively identifying opportunities to exceed customer expectations 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 between service quality attributes, customer satisfaction, and customer loyalty in various service industries, including retail banking When customers perceive a high level of service quality across multiple dimensions, such as _ reliability, responsiveness, assurance, empathy, and tangibles, they are more likely to be satisfied with their overall service experience Customer satisfaction, in turn, is strongly correlated with customer loyalty, as satisfied customers are more likely to continue doing business with the same service provider and recommend the provider to others In contrast, dissatisfied customers are more likely to switch to a competitor and may also share their negative experiences with others, which can 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 across all dimensions in order to foster customer satisfaction and loyalty This may involve investing in training and development for service personnel, improving service delivery processes, enhancing physical facilities and equipment, and gathering and acting on customer feedback to continually improve the service experience.

2.5 Review of previous studies

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

In the review of previous studies, several research articles conducted in Vietnam were analyzed to investigate the impact of service quality on customer satisfaction in different industries, including banking, hospitality, and airline.

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

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had a significant positive impact on customer satisfaction and that customer satisfaction 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 a significant positive impact on customer satisfaction The study also emphasized the importance of staff competence and communication skills as key factors influencing service quality and customer satisfaction in the hotel industry.

Ho and Chen (2018) explored the impact of service quality on customer satisfaction in the airline industry in Vietnam and found that service quality dimensions significantly influenced customer satisfaction The study also highlighted 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 in

Vietnam and found that service quality dimensions, including reliability, responsiveness, assurance, empathy, and tangibles, significantly influenced

customer satisfaction The study also revealed a positive correlation between customer satisfaction and customer loyalty, emphasizing the importance of service quality in fostering customer loyalty in the Vietnamese retail banking

These studies collectively suggested a positive relationship between service quality and customer satisfaction in Vietnam, across various industries They highlighted the importance of delivering high-quality services to enhance

customer satisfaction in the Vietnamese context

Furthermore, a review of some international studies revealed the significance of service quality in shaping customer satisfaction and loyalty in various global markets.

Aman (2008), conducted a thesis which focused on the effects of the service delivery process and service quality on customer satisfaction in the context of EEPCO's customer service centers in Bahir Dar town The study used a case

study 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, ultimately leading to higher levels of customer satisfaction.

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

quality, customer satisfaction, and perceived value among customers of commercial banks in Nakuru Municipality, Kenya The results suggested that there was a positive and significant association between service quality and customer satisfaction, which indicated that customers who perceived higher levels 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, suggesting that it was an important factor in determining customer satisfaction in the commercial 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 influenced customer satisfaction and loyalty in both online and offline markets The study highlighted the importance of service quality in shaping customer satisfaction and loyalty in the Chinese market, which has implications for businesses operating in global markets.

Furthermore, Ndubisi (2007) examined the relationship between service quality, customer satisfaction, and loyalty in the Australian context The findings revealed that service quality dimensions had a significant positive impact on customer satisfaction and loyalty The study also proposed a research agenda for further investigating the impact of service quality on customer satisfaction and loyalty in the Australian market, which could provide insights applicable to other global 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 clear definition of key concepts and a logical explanation of how service quality and customer satisfaction are related to each other This chapter also provided an explanation of how the framework will be used to guide the research The theoretical framework would be supported by data observation and analysis in the 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 a rigorous 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 was investigated The research methodology involved a series of steps that are carefully 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 a theoretical 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 research topic, the research question or problem, and the significance of the study The thesis overview provided the context for the entire research process and a roadmap for the reader to understand the purpose and direction of the study.

The next step in research methodology was to identify the research problem or research question The research problem should be clearly defined, specific, and relevant to the field of study because it provided the foundation for the research and guided the entire research process In this research, the impact of service quality 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 theoretical framework and research model The theoretical framework provided a conceptual framework for the study, incorporating existing theories, concepts, and models that are relevant to the research problem It helpsed to establish a solid theoretical foundation for the study and guided the development of the research model The research model outlined the relationships between the variables being studied and provided a visual representation of the proposed research design In this study, there are five independent variables, including tangibility, reliability,

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