research method topic the pleasure and fulfillment that customers experience when utilizing the services offered by the vinpearl hotel chain

Secondly, our team would like to express our sincere gratitude to the Faculty of Business Administration at Ton Duc Thang University for providing us with the opportunity to study and re

VIET NAM GENERAL CONFEDRATION OF LABOR

TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMITRATION

RESEARCH METHOD Topic: The pleasure and fulfillment that customers experience when utilizing the services offered by the

Vinpearl hotel chain

Instructor: TRAN THI VAN TRANG Group: Phuc Long

Ho Chi Minh, March 2023

VIET NAM GENERAL CONFEDRATION OF LABOR

TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMITRATION

RESEARCH METHOD Topic: The pleasure and fulfillment that customers experience when utilizing the services offered by the

Vinpearl hotel chain

Instructor: TRAN THI VAN TRANG Group: Phuc Long

Ho Chi Minh, March 2023

COMMENTS FROM LECTURERS

ACKNOWLEDGMENTS

First of all, we would like to express our deepest and most sincere thanks

to the instructor who guided our – Mrs Tran Thi Van Trang – Lecturer of Faculty of Business Administration, Ton Duc Thang University for wholeheartedly guiding our through the learning process as well as giving suggestions and creating the best conditions in completing the report

Secondly, our team would like to express our sincere gratitude to the Faculty of Business Administration at Ton Duc Thang University for providing us with the opportunity to study and research this subject The Faculty has been incredibly supportive, sharing their expertise and knowledge of referencing documents, which has not only been useful in carrying out and completing our research project, but also in our overall learning and practical experiences at Ton Duc Thang University

Thirdly, we would like to thank our teachers for their guidance, help, and the knowledge they have imparted upon us during this project Despite the challenges of online learning with a new teaching method, we were able to complete our research project thanks to their support Additionally, we would like to express our gratitude to our team members who have worked together to accomplish this study

Finally, we would like to extend our sincerest wishes to our teachers and friends, who have continuously supported and cared for us throughout our academic journey We hope that they are always healthy and at peace Our team is grateful for their kindness and wishes to express our thanks once again

DECLARATION OF AUTHORSHIP THE THESIS HAS BEEN ACCOMPLISHED AT TON DUC THANG UNIVERSITY

We hereby declare that our report is our own work under the guidance and guidance of MBA Tran Thi Van Trang; and that the work and the results contained therein are original and have never been sent anywhere for any purpose The figures and figures presented in this report are the analysis, comments and assessments from various sources made by ourself and have been fully recorded in the reference section

In addition, comments, reviews and other data used by other authors and organizations have been clearly recorded and cited

We will take full responsibility for any fraud discovered in our report Ton Duc Thang University is not involved in any copyright infringement of my work (if any)

Author

ABSTRACT

The present research study proposes an integrated model that aims to examine the influence of several constructs, namely, customer brand identification, affective commitment, customer satisfaction, and brand trust, on the customer behavioral intention of loyalty within the hospitality industry This research combines social identity theory and relationship marketing theory The data for this research was collected through a survey administered to 345 customers who stayed at Vinpearl’s hotel chains Confirmatory factor analysis was utilized to analyze the data, followed

by structural equation modeling The findings suggest that customer brand identification has a direct impact on customer behavior intention of loyalty and is also mediated by affective commitment, customer satisfaction, and brand trust Additionally, the latter three constructs have a direct influence on customer behavior intention of loyalty, and the impact of customer satisfaction and brand trust on customer behavior intention of loyalty is also mediated by affective commitment These results have not been extensively explored in the marketing field, particularly

in the hospitality research domain Further exploration of these relationships can potentially advance the field

Keywords: customers behavior, hospitality industry, hospitality management, consumers preferences, economy

LIST OF ABBREVIATIONS AND ACRONYMS

PLS-SEM Partial Least Square - Structural Equation Modeling

CBIL Customer Behavioral Intention of Loyalty

LIST OF FIGURES

Figure 2.1 Theoretical framework 14Figure 2.2 Research framework 15Figure 2.3 Conceptual model 16

LIST OF TABLES

Table 3.1 Questionairy design 26

Table 3.2 Parameters of variables in SmartPls 4 31

Table 4.1 Respondent Demographics 32

Table 4.2 Conformity results of factors 32

Table 4.3 Outer loading, VIF, AVE and Composite Reliability (Smart PLS 4.0) 36

Table 4.4 Fornell and Larcker criterion 39

Table 4.5 Heterotrait – Monotrait ratio test 39

Table 4.6 Model fit 40

Table 4.7 R-Square result 41

Table 4.8 Hypotheses testing 42

TABLE OF CONTENTS

CHAPTER 1 INTRODUCTION 1

1.1 Background 1

1.2 Problem Statement 4

1.3 Purpose of research 4

1.4 Research question 5

1.5 Significant of research 5

CHAPTER 2 LITERATURE REVIEW 7

2.1 Theories framework: 7

2.2 Concepts and theories: 8

2.2.1 Customer Brand Identification (CBI) 9

2.2.2 Customer Brand Identification of Loyalty (CBIL) 9

2.2.3 Brand Trust (BT) 10

2.2.4 Affective Commitment (AC) 11

2.2.5 Customer satisfaction (CS) 12

2.3 Previous studies 13

2.3.1 The research conducted by Waris Ali, Yu Danni, Badar Latif , Rehana Kouser and Saleh Baqader (2021) 13

2.3.2 The research conducted by James Agyei, Shaorong Sun, Emmanuel Kofi Penney, Eugene Abrokwah, and Richmond Ofori-Boafo (2021) 14

2.3.3 The research by Raouf Ahmad Rather, Shehnaz Tehseen, Murtaza Hassan Itoo & Shakir Hussain Parrey (2019) 15

2.4 Research Model and Hypothesis 16

2.4.1 Research Model 16

2.4.2 Hypothesis 16

2.4.2.1 Customer Brand Identification 17

2.4.2.2 Affective commitment 19

2.4.2.3 Customer Satisfaction 20

2.4.2.4 Brand Trust 21

2.4.2.5 Customer behavioral intention of loyalty 21

2.4.2.6 Mediation effects 23

CHAPTER 3 METHODOLOGY 25

3.1 Research design 25

3.2 Questionnaire design 25

3.3 Measurement scale 26

3.4 Sample size 29

3.5 Collection method 29

3.6 Pilot test 30

3.7 Data analysis method 30

CHAPTER 4 DATA ANALYSIS 32

4.1 Respondent demographics: 32

4.2 Measurement model 33

4.2.1 Indicator Reliability 33

4.2.2 Internal Consistency Reliability 36

4.2.3 Variance Inflation Factor 37

4.2.4 Convergent validity 37

4.2.5 Discriminant validity 38

4.3 Structural Model 40

4.3.1 Model fit 40

4.3.2 R-square 41

4.3.3 Path coefficient 41

4.4 Test for Moderating Effect 43

CHAPTER 5 CONCLUSION 44

5.1 Summary 44

5.2 Implications 45

5.2.1 Customer Brand Identification positively impact on Affective Commitment 45

5.2.2 Brand Trust has a positive relationship with Customer Behavioral Intention of Loyalty 45

5.2.3 Customer Satisfaction positively influence Customer Behavioral Intention of Loyalty 46

5.2.4 Customer Brand Identification has a positive direct effect on Customer Behavioral Intention of Loyalty 47

5.3 Theoretical Implications 47

5.4 Managerial Implications 49

5.5 Limitations and Recommendations for future research 50

REFERENCES 52

APPENDIX 62

Appendix 1: Smart PLS result: 62

As a major player in the tourism industry, the hospitality sector contributes greatly to the success of tourism in a country In terms of contribution to the overall economy, the service industry recovered and expanded strongly, reaching a growth rate of 9.99% in 2022, the highest rate since 2011.

The tourism and hospitality industry has grown steadily over time and emerged

as the world's largest service sector profit earner Every nation strives to capture the tourism market by providing superior tourism products and/or services due to the industry's fierce competition In addition, traveling has become more convenient and cost-effective as a result of revolutionary industry shifts like the rise of low-cost airlines and online platforms for lodging reservations Since 2021, Vietnam has become one of the most appealing destination and reached 6th place in Southeast Asia In recent years, new high-end hotels have been built as a result of the rising number of tourists visiting Vietnam With the advantage of scenery and culture, Vietnam is always an attractive destination for tourists The development of the tourism industry thereby promotes the growth of the hospitality industry

The COVID-19 outbreak has caused a lot of damage to Vietnam's tourism industry The pandemic forced the closure of the country, the refusal of

international travel While domestic travel is still allowed, the outbreak of

COVID-2

19 is still limiting travel throughout Vietnam Companies and businesses operating

in the tourism sector suffered large losses and some closed; restaurants and hotels also had to shut down

According to the World Tourism & Travel Council (WTTC), in 2020-2021 alone, the pandemic caused the loss of 62 out of a total of 334 million jobs in the tourism industry According to a report of the Hanoi Department of Tourism, in

2021, about 1,550 accommodation establishments suspended operations and changed industries; Along with about 21,500 workers in the tourism industry who had to suspend their jobs, accounting for 34% of the total number of employees serving in the accommodation sector, 11,600 workers terminated labor contracts, accounting for about 18.3% Across most provinces in the country, it is also common for tourism workers to quit their jobs to find new jobs (dangcongsan.vn) And according to statistics of the Vietnam National Administration of Tourism, revenue of accommodation and catering services in the first quarter of 2020 decreased by 9.6% compared to the same period last year In which the City Ho Chi Minh City, Da Nang, Hanoi all reduced from 15% to 30% of revenue The Covid-19 pandemic in 2020 has had a strong impact on the Vietnamese economy, in which, the tourism industry is heavily affected Flight bans, travel restrictions and the apprehension of tourists due to fear of the impact of the Covid-

19 epidemic have caused many hotels, restaurants and retail chains in tourist destinations to become empty, tourism revenue plummeted According to experts,

in 2020, Vietnam's tourism does not reach the target of welcoming 20.5 million international visitors The recovery of Vietnam's tourism will depend on when the Covid-19 epidemic is controlled in the world According to many tourism operators,

in the past 2 years, due to the impact of the COVID-19 pandemic, many travel businesses have closed, stopped operating, exhausted financial resources, leading to many workers in the tourism industry having to quit their jobs or switch to new jobs Many skilled workers are concerned that jobs in the tourism industry lack

3

stability, so they do not want to change careers, thereby leading to a shortage of labor in the tourism industry, in tourism business enterprises The imbalance of supply and demand for human resources in the tourism industry, the problem of lack of human resources in the tourism industry, including high-quality human resources is unavoidable when Vietnam's tourism is in the recovery period The re-recruitment and training of new human resources is a balanced problem of business performance of enterprises after two years of being affected by the epidemic Due to the impact of the pandemic, the revenue of the tourism industry in 2020 decreased by 59.7% compared to 2019 Accommodation and catering revenue also decreased, down 13% compared to 2019

WTTC produces reports on the economic and employment impact of Travel & Tourism for 185 countries/economies and 25 geographic or economic regions in the world WTTC’s latest annual research shows:

Following a loss of almost US$4.9 trillion in 2020 (-50.4% decline), Travel & Tourism's contribution to GDP increased by US$1 trillion (+21.7% rise) in 2021

In 2019, the Travel & Tourism sector contributed 10.3% to global GDP; a share which decreased to 5.3% in 2020 due to ongoing restrictions to mobility 2021 saw the share increasing to 6.1%

The decrease in tourism activities has resulted in a considerable decline in revenue generated by the travel and tourism industry in 2020, which stood at VND 17.9 trillion, representing a substantial drop of 59.5% from the previous year Notably, several localities experienced a significant decline in tourism revenue in

2020, with Khanh Hoa recording an 85.1% decrease, Quang Nam a 78.7% decrease,

Ho Chi Minh City a 76.7% decrease, Da Nang a 73.3% decrease, Ba Ria - Vung Tau a 64.3% decrease, Binh Duong a 60.1% decrease, Quang Binh a 58.2% decrease, Can Tho a 55.3% decrease, Hanoi a 48.4% decrease, and Binh Dinh a 40.1% decrease Additionally, the revenue generated from accommodation and food

of customer who trust and regularly come back to buy your business's products They are likened to valuable assets of the business Any business that wants to develop long-term and sustainably is indispensable for this group of customers The fact that people choose to shop at a store or use a particular product instead of choosing other stores or shopping for products made by other businesses is a characteristic of loyal customers and a way of identifying loyal customers Even if customers are fans of a brand, they will be willing to stand up for that brand, introduce it to everyone around them, and ignore invitations from competitors

However, this number of customers using the service of vinpearl chain has decreased significantly because the covid epidemic has severely affected the world economy, especially a developing country like Vietnam is also affected Currently, hotels are having to reduce human resources as well as other costs to be able to operate from the beginning Even if the new service of the hotel launched, it would

be difficult to people purchase or experience it Therefore, retaining customers will face many difficulties This study will analyze customer recognition of the brand after experience it

1.3 Purpose of research

The research of this topic is to find out and analyze customer brand identification

in Hospitality Industry Nowadays, Hospitality Industry has played one of the most important role in the economy in the world in general and Vietnam in particular It

Theoretical aspects of customer loyalty in Vietnam form the focus of this study

To this end, a theoretical model was developed and tested to examine the effects of CBI and customer satisfaction on various customer-based variables, including brand trust, affective commitment, and consumer behavioral intention towards loyalty

For practical reasons, This study will assist businesses in realizing the value of customer loyalty and satisfaction The COVID-19 outbreak is very widespread right now, so businesses are worried about the value of customer loyalty and brand trust, especially increasing brand trust when utilizing hotel services The findings also have

a wide range of ramifications for hospitality businesses looking to forge enduring connections with their clients

1.4 Research question

The group has identified the following questions to tackle the following difficulties in order to achieve the aforementioned research objectives and research orientation:

• What are factors that influence customer brand indentification ?

• How does it affect customer brand identification ?

• What managerial implications should be presented to increase customer brand identification ?

1.5 Significant of research

This study has made two significant contributions Firstly, it has extended the scope of relationship marketing by introducing an integrative socialidentity or

6

relationship marketing-based model This model has added to our current understanding of the functions that crucial relational concepts, such as customer satisfaction, hotel brand trust, affective commitment, and customer behavioral intention of loyalty, play in the relationship marketing process To develop and evaluate the theoretical model, a sample of 345 hotel guests from hotels in Vietnam was used Confirmatory factor analysis (CFA) and structural equation modeling (SEM) analyses were employed to further enhance our comprehension of the model Secondly, this study has offered managerial recommendations that focus on increasing customer loyalty and retention These recommendations are expected to

be of great assistance to upscale hotel managers and other stakeholders The recommendations were formulated based on the study's findings and can be used to develop strategies to improve customer loyalty and retention in upscale hotels