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

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

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

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

3.2.1.1 Qualitative research design 42

3.2.1.2 Qualitative research result 43

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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

6 4 Analyzing the difference in customer satisfaction when using Yugen Bar's delivery service during the COVID-19 between survey groups with different demographic

7

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

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,

10 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

12 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

1.5.2 Practical meaning

Based on the basis of the model and the hypothesis built into the framework of this study, the research will determine implications for Yugen Bar to have a better understanding of their customers Besides that, the authors also analyze and evaluate factors and their influence in the satisfaction of customers in delivery service during COVID-19 pandemic Since then, Yugen Bar can apply the recommendations suitable for the current conditions of the bar to enhance and innovate the delivery service In conclusion, Yugen Bar can rely on this research to implement customer acquisition campaigns and increase revenue in the pandemic

48 are many variables in the scale that do not have any difference, this phenomenon is called overlap in the scale (Nguyen Đinh Tho, 2011)

3) Exploratory factor analysis (EFA)

Exploratory factor analysis (EFA) is a quantitative analysis method used to reduce a set of many interdependent measures into a smaller set of variables (called factors) so that they are significant but still contains most of the information content of the original set of variables (Hair et al., 2006).

In factor analysis, the necessary requirement is that the KMO coefficient Meyer-Olkin (KMO) must have a large value (0.5 ≤ KMO ≤ 1), showing that the factor analysis is appropriate If the KMO < 0.5, factor analysis is likely not suitable for the data Bartlett's test has statistical significance (sig Bartlett's Test < 0.05), showing that observed variables are correlated with each other in the factor At the same time, the factor loading of each observed variable must be ≥ 0.5, the higher the factor loading, the greater the correlation between that observed variable and the factor and vice versa

(Kaiser-Eigenvalue is a commonly used criterion to determine the number of factors in EFA analysis With this criterion, only factors with Eigenvalue ≥ 1 are kept in the analytical model and the total variance explained used to explain by each factor ≥ 50% in order to satisfy the requirements of factor analysis (Gerbing & Anderson, 1988)

When conducting the factor analysis, the authors used the Extraction method with Varimax Rotation

Factor loading value level according to Hair et al (2006):

Factor loading ≥ 0.3: Minimum condition for the observed variable to be kept Factor loading at ≥ 0.5: The observed variable has good statistical significance Factor loading at ≥ 0.7: The observed variable has very good statistical significance

4) Impact of factors by regression analysis

Multiple linear regression (MLR), also known simply as multiple regression, is a statistical technique that uses several independent variables to predict the outcome of a dependent variable The goal of multiple linear regression is to model the linear relationship between the independent variables and dependent variables In essence, multiple regression is the extension of ordinary least-squares (OLS) regression because it involves more than one independent variable (Hayes Adam, 2021)

Then, according to Phamlocblog, the regression coefficient of each independent variable will be evaluated whether it is significant in the model or not based on the t test