factors affecting customer satisfaction in delivery service during the covid 19 pandemic in the case of yugen bar bachelor of hotel management thesis

FPT UNIVERSITY Factors Affecting Customer Satisfaction in Delivery Service During the COVID-19 Pandemic in the case of Yugen Bar Bachelor of Hotel Management Thesis Quach Chanh Dai Thanh

FPT UNIVERSITY

ග🕮ග

Factors Affecting Customer Satisfaction in Delivery Service During the COVID-19 Pandemic

in the case of Yugen Bar

Bachelor of Hotel Management Thesis

Quach Chanh Dai Thanh Thien SS130056

Ho Chi Minh, December 2021

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ACKNOWLEDGEMENTS

First of all, the authors would like to express their sincere thanks to FPT HCM University for orienting students to implement scientific research as a graduation thesis In particular, the authors are very grateful to the Hospitality & Tourism Management Faculty and Mr Ho Trung Chanh, for organizing webinars and workshops to train students to equip themselves with skills to carry out this scientific research

Special appreciation and deep gratitude to Mr Ho Tra Giang for guiding and supporting the research team during the process of completing the graduation thesis During the research process, he closely monitored, enthusiastically instructed, shared his valuable knowledge and experience to help the authors complete the research paper

Also giving a big thanks to the experts who shared their opinions and based on those opinions, the authors were able to develop a research model and questionnaire Besides, the authors really appreciate Yugen Bar's support in collecting data and using the ideas proposed

by the authors, which means a lot when it shows that this research paper not only brings academic value but also highly practical value

Last but not least, to all people who contributed to this study, without your presence, there will not be this successful thesis Thus, thank you for your support and encouragement during the procedure

Wish you health and success! Once again, sincerely thank you all!

Ho Chi Minh City, December 2021

Authors of the thesis

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ABSTRACTS

The research “Factors Affecting Customer Satisfaction in Delivery Service During the COVID-19 Pandemic in the case of Yugen Bar” was proceeded in Ho Chi Minh city The objective of this study is to systematize and identify factors affecting customer satisfaction in delivery service during the pandemic The research method is qualitative research (focus group discussion) and quantitative research (online survey) The sample size

of the survey is 168, with respondents are customers of Yugen Bar The study uses the SPSS

20 to analyze the reliability of the scale through Cronbach's Alpha, EFA to test the model The study’s results show that five factors positively affect customer satisfaction: Delivery service, Safety packaging, Promotion, Perceived price, Distribution channel Besides, the results of ANOVA analysis showed that there was no difference between the survey groups with factors such as gender, age, income, and employment when analyzing factors affecting customer satisfaction in delivery services during the pandemic With this research’s results, the authors propose some managerial implications to improve delivery service quality and enhance customer satisfaction

Key words: customer satisfaction, delivery service, covid-19, Yugen Bar

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TABLE OF CONTENTS

ACKNOWLEDGEMENTS 1

ABSTRACTS 2

TABLE OF CONTENTS 3

LIST OF TABLES 7

LIST OF FIGURES 8

CHAPTER 01: INTRODUCTION 9

1.1 Overview of delivery service in Ho Chi Minh city 9

1.2 Research objectives 10

1.2.1 General objectives 10

1.2.2 Specific objectives 10

1.2.3 Research questions 10

1.3 Research subjective and research scope 11

1.3.1 Research subjective 11

1.3.2 Research scope 11

1.4 Research method 11

1.4.1 Qualitative research 11

1.4.2 Quantitative research 11

1.5 Research meaning 12

1.6 Research outline 13

CHAPTER 1 SUMMARY 13

CHAPTER 2: LITERATURE REVIEW 14

2.1 Theoretical background 14

2.1.1 Definition of food delivery service 14

2.1.2 Definition of service quality 15

2.1.3 Definition of satisfaction 16

2.1.4 The relationship between service quality and customer satisfaction 17

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2.2 Factors affecting customer satisfaction 18

2.3 Related research models 19

2.3.1 Gronroos`s model of technical, functional quality (1984) 19

2.3.2 Parasuraman, Zeithaml and Berry gap model of service quality (1985) 20

2.3.3 Cronin, Taylor servperf model of perceived levels (1992) 22

2.3.4 Philip Kotler and Gary Armstrong model of three level of products (2001) 23

2.4 Overview of related research 24

2.4.1 Domestic researches 24

2.4.2 Foreign researches 26

2.5 Practical basis 34

2.6 Proposed research model and hypotheses development 35

2.6.1 Proposed research model 35

2.6.2 The definition of variables in the research model 37

2.6.3 Research hypotheses 38

CHAPTER 2 SUMMARY 40

3.1 Research process 41

3.2 Research method 42

3.2.1 Qualitative method 42

3.2.1.1 Qualitative research design 42

3.2.1.2 Qualitative research result 43

3.2.2 Quantitative method 46

3.2.2.1 Sampling method 46

3.2.2.2 Data processing method 46

3.3 Ethical consideration 50

CHAPTER 3 SUMMARY 51

4.1 Overview of Yugen bar 52

4.2 Research results 53

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4.2.1 Reliability analysis (Cronbach's Alpha) 55

4.2.2 Exploratory factor analysis (EFA) 56

4.2.2.1 Exploratory factor analysis for independent factors 56

4.2.2.2 Exploratory factor analysis for dependent factors 58

4.2.3 The impact of the variables 59

4.2.4 Analyze the difference in customer satisfaction when using Yugen Bar's delivery service during the COVID-19 between survey groups with different demographic characteristics 60

CHAPTER 4 SUMMARY 61

CHAPTER 5: CONCLUSIONS AND IMPLICATIONS 62

5.1 Conclusions 62

5.2 Implications 63

5.2.1 Implication for perceived price 63

5.2.2 Implication for distribution channel 64

5.2.3 Implication for delivery service 65

5.2.4 Implication for safety packaging 66

5.3 Limitations and future research 67

REFERENCES 68

Appendix 2: Group Discussion Questions 73

GROUP DISCUSSION QUESTIONS 73

Appendix 3: Group Discussion Result 76

Appendix 4: Survey Questionnaire 81

Appendix 5: Official Result 86

1 Reliability Analysis (Cronbach's Alpha) 86

2 Exploratory Factor Analysis (EFA) 88

2.1 Exploratory Factor Analysis for Independent Factors 88

2.2 Exploratory Factor Analysis for Dependent Factors 90

3 The Impact of The Variables 91

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4 Analyzing the difference in customer satisfaction when using Yugen Bar's delivery service during the COVID-19 between survey groups with different demographic

characteristics 91

4.1 Gender 91

4.2 Age 92

4.3 Income 92

4.4 Occupation 93

5 Descriptives Statistics 93

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LIST OF ABBREVIATIONS

Table 3.2 The results of the scales through the group discussion technique 43

Table 4.3 KMO and Bartlett’s Test of independent variables 56 Table 4.4 Total Variance Explained of independent variables 56

Table 4.6 KMO and Bartlett’s Test and Total Variance Explained of satisfaction factor 58

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LIST OF FIGURES

Figure 2.6 E-Satisfaction and continuance intention to use mobile food ordering

Figure 2.7 Factors affecting customer satisfaction and loyalty in online food felivery

Figure 2.8 The online food delivery service and their impact on customer satisfaction

Figure 2.9 The influence of online food delivery service quality on customer satisfaction

Figure 2.10 Evaluation of factors affecting customer loyalty in the restaurant industry 30 Figure 2.11 The impact of product quality, price, and distribution on satisfaction and

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CHAPTER 01: INTRODUCTION

1.1 Overview of delivery rvice in Ho Chi Minh city se

Explanation: The 15th Directive in Ho Chi Minh city (HCMC)

The COVID-19 pandemic has appeared and existed for almost 3 years, accompanied

by the virus, many changes and directives have been proposed to control the situation According to the promulgate of the Prime minister, and the brief of HCDC (Ho Chi Minh city disease control, 2021), applying for delivery service and food and beverage (F&B) service, in the 15th Directive, all necessary service like F&B and delivery are still allowed

to provide products However, only online service can be used, in short, all products from food stores, restaurants, cafes, etc must be taken by shippers and customers will pay online

by E-wallet or cash when receiving products

1) Before the 15th directive

People used to prefer having meals at restaurants or buying food by themselves, however, the development of online service brings a huge benefit for both business and customer, delivery platforms have appeared and changed people’s behavior Everyone chooses delivery service as a habit when they want to transfer things or order food and beverage because they can save time and cost In a dynamic city like HCM city, the demand

of using these services is extremely high, thus, many apps have been developed and met the need In a usual scene, the “shippers” work non-stop from morning till night Around HCM city, a lot of “shippers” from various shipping brands are always in a rush to send things and food to customers

2) During the 15th directive

The 15th directive first applied to control the disease since March 2020 (Ministry of health portal, 2020) Up to now, HCM city has applied this directive 2 times, March 2020 and June 2021, there are some changes in both stages, however, for the F&B services, the

“take away” and “paying online” measures are recommended to be used

In HCM city, F&B service plays a big role in economics, the out-of-home consumption

in F&B takes over 41%, including restaurants, cafes, bars, pubs, street food, etc (Vietnam Briefing, 2017) The demand of using this service is increasing day by day, thus, many and many F&B delivery services have been established and grown rapidly The citizens get used

to ordering food online since the convenience of staying at home and food or drinks will be delivered to their living room in a short time After applying the 15th directive in HCM city,

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online delivery services have an opportunity to blow up because people are not allowed to

go outside, however, delivery services are still being available

Behavior and satisfaction of customers when using delivery service, especially in F&B delivering have been studied and analyzed quite much before However, in a tough situation

as the COVID-19 pandemic and many directives have been provided by the government, F&B services have fallen into depression and have not found a solution Therefore, the topic

“Factors Affecting Customer Satisfaction in Delivery Service during the COVID-19 Pandemic” will contribute to evaluating and clarifying the factors that affect customer satisfaction when using delivery services As a result, every piece of advice and suggestion will be considered and applied to enhance the experience of customers

1.2 Research objectives

1.2.1 General objectives

This research is conducted to identify the factors that affected the customer satisfaction about delivery service during the COVID-19 pandemic With the qualitative and quantitative methods, the result of this research will mirror those components In summary, based on the data analysis, this research will suggest the solutions and ideas that can help Yugen Bar to improve and optimize the quality of Yugen delivery service during pandemic

1.2.2 Specific objectives

There are three main objectives which include:

1) Systematize and select factors that affected the customer satisfaction about delivery service during the COVID-19 pandemic

2) Analyze and measure the collected data about the factors that affected the customer satisfaction about delivery service during the COVID-19 pandemic

3) Suggest the implication to improve service delivery quality and enhance customer satisfaction for Yugen Bar

Research place: Ho Chi Minh City

Research time: From September 06 to December 12, 2021

Research target: Customers of Yugen Bar The survey is conducted in 4 weeks with the results of 168 samples

Research data:

Primary data: Collected through questionnaires result from the customers

of Yugen Bar conducted in Ho Chi Minh City

Secondary data: Collected through journal articles, newspapers, books,

conference proceedings, televisions, and reports from governments or reliable organizations

1.4 Research method

Both qualitative and quantitative research methods will be used in the data analysis process of this report to build and determine factors affecting customer satisfaction about delivery service at Yugen bar during the pandemic

1.4.1 Qualitative research

1) Based on local, foreign research documents are collected to discover factors affecting customer satisfaction about delivery service during the COVID-19 pandemic 2) Focus group discussion method will be used in this research Discuss with experts, lecturers with expertise related to the topic “Factors Affecting Customer Satisfaction

in Delivery Service During the COVID-19 Pandemic” Then consult the opinion from the group discussion to supplement and complete the questionnaire

1.4.2 Quantitative research

1) Quantitative research is the process of collecting and analyzing numerical data It can

be used to find patterns and averages, make predictions, test causal relationships, and generalize results to wider populations By using Google Form to conduct an online survey on factors affecting customer satisfaction about Yugen Bar's delivery service during the pandemic The questionnaire will be sent to a maximum of 168 respondents who are customers of Yugen bar

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2) Primary data will be analysed by SPSS 20.0 data analysis technique to measure the influence of factors affecting customer satisfaction about Yugen Bar's delivery service during the pandemic as follows:

➢ Analyze the reliability of the scale using (Cronbach's Alpha)

➢ Exploratory factor analysis (EFA)

➢ Analyze the impact of factors by regression analysis

➢ Analyze the difference in customer satisfaction when using Yugen Bar's delivery service during the COVID-19 pandemic with gender, age, income and occupation

3) The questionnaire is designed based on a 5-level Likert scale (from completely disagree to completely agree) to assess the influence of factors on satisfaction when using delivery service at Yugen Bar during the COVID-19 pandemic

1.5 Research meaning

1.5.1 Academic meaning

This research is conducted by formal university students majoring in Hotel Management to defend their Bachelor of Hotel Management Thesis Choosing a topic and conducting a scientific research paper is the basis for the university to consider graduation for students At the same time, the result of this research is also a premise for students to do well in future projects and reports