Sqm shift 2 team 1 final project submissioncourse quality management of tourism services

By examining the customer service experience at Highlands Coffee, we can understand how the company manages its service quality, maintains customer satisfaction, and sustains a competiti

MINISTRY OF EDUCATION AND TRAINING

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES -

INFORMATION TECHNOLOGY

FACULTY OF TOURISM AND HOSPITALITY

Semester 2, Academic Year 2024

COURSE

QUALITY MANAGEMENT OF TOURISM SERVICES

LECTURER:

LE HUU CHAU, MBA

Ho Chi Minh City, may 2024

GROUP LIST

participation

2.1 Customer service quality managemeIt ch» hs nh kh 9 2.1.1 Definition of servIce quaÌIfy ác HH ĐT» nhàn nu kk KH 9 2.1.2 Definition of customer satIsfacfion nh nh nh khang 9 2.1.3 Definition of customer eXpeCfafIOn eter kh kh 9

2.2.4, Definition of NPS (Net Promoter Score) cetera 13 CHAPTER 3: METHODS OF GAINING THE INFORMATION c 15 3.1 Subjects and scope of SUIVeY nnn rir r iter 15

CHAPTER 4: FINDINGS AND DISCUSSION các niente ieeeen 23 4.1 Tangible (T) nh HH Hà HH Hà KH gà KH Hà khi 23

4.3 Responsiveness (RP) Sun nh HH nhà KĐT LH 28

h2 A(0Ciiaaiiiiiiiaiaiaiẳiảiii 33 CHAPTER 5: CONCLUSION AND RECOMMENDATIONS c ii 35 5.1 ComprehensIve concÌus1On cccccnnn nàn Đàn H> HH TH LH 35 5.2 Suggestions for improving the companys cusfOImeT S€TVIC€ à.cằằàằ 35

5.2.2 Improve product qualify and pTICInE renner tees 35

CHAPTER 1: INTRODUCTION 1.1 Reasons for choosing the business

The reasons we chose Highlands Coffee as our research subject is their prominent position in the coffee industry Highlands Coffee is a renowned brand known for its quality products and unique café experience By examining the customer service experience at Highlands Coffee, we can understand how the company manages its service quality, maintains customer satisfaction, and sustains a competitive advantage in a fiercely competitive market Furthermore, researching Highlands Coffee provides us with the opportunity to explore various aspects of service management, including customer service methods, operational efficiency, and brand positioning strategies Overall, choosing Highlands Coffee offers us a great opportunity to learn practical examples of effective service management principles in reality

1.2 Introduction of the business

1.2.1 Overview

Highlands Coffee is a leading coffeehouse chain in Vietnam, renowned for its premium quality coffee and unique café ambiance Founded in 1998 by David Thai and Ly Quy Trung, Highlands Coffee has grown rapidly to become one of the most recognizable brands in the Vietnamese coffee industry

What sets Highlands Coffee apart is its commitment to offering customers an authentic Vietnamese coffee experience combined with a modem and comfortable environment The company takes pride in sourcing the finest Arabica beans from the Central Highlands of Vietnam, ensuring that every cup of coffee delivers exceptional taste and aroma

Highlands Coffee's extensive menu goes beyond traditional Vietnamese coffee to

include a variety of espresso-based drinks, smoothies, and teas, catering to diverse tastes and

preferences Each café 1s designed with a contemporary yet cozy atmosphere, providing customers with a welcoming space to relax, socialize, or work

ber ing Wa gi J) Với ben cộng đảng là gì 'Với bạn, cộng đòng là gì” vi “ở h

ay, SZ PS ': oy s@: oi, > ey,

<< Gg ones? a & ce Gg ones Cia ching KT (qua Kì” oi

Picture 1.2.1: The history of the Highlands Coffee logo development

(Source: highlandscoffee.com.vn)

With a strong emphasis on quality and customer satisfaction, Highlands Coffee has built

a loyal following of coffee enthusiasts both locally and internationally The brand's expansion beyond Vietnam's borders reflects its ambition to share the rich flavors of Vietnamese coffee with the world

1.2.2 Company vision, mission and core values

With a profound vision, Highlands Coffee transcends beyond being merely a business brand, serving as a catalyst to propel Vietnamese coffee culture into an integral part of the global cultural landscape Their mission extends beyond providing quality coffee; it encompasses creating a space for people to gather, interact, and converse, where individuals can savor not only the exquisite taste of coffee but also the space for human connection The core values of Highlands Coffee are not just part of their business strategy but also

an expression of a larger mission, a commitment to community and the environment Highlands Coffee believes that sustainability is not just a responsibility but also an opportunity to build a brighter future for future generations

From coffee beans to brewed coffee, Highlands Coffee continuously inspires and spreads love They take pride in the unique cultural values they bring and are committed to maintaining and developing these values in all their activities

— xe — —! bo — we — _D _àởàởàờÀàộạộ

Vision Mission Core Values

To become Vietnam's most favorite cafe Customer Focus

Teamwork and collaboration

coffee & tea and proudly share this with the

world Respect and Integrity

Everywhere, everyday, every customer Proudly Vietnamese and Community

Passion

Source: careers highlandscoffee.com.vn

1.3 Objectives and scope

1.3.1 Research objective

In the service quality research project at Highlands Coffee, our team has set specific objectives to better understand how the company manages and delivers its services Our first objective is to evaluate the effectiveness of the quality standards applied by Highlands Coffee and determine whether they meet customer expectations Additionally, we aim to identify key factors influencing customer satisfaction and loyalty at Highlands Coffee

outlets

Furthermore, we will assess operational processes, including order processing, waiting times, and employee responsiveness, to identify strengths and weaknesses in the service system Lastly, we will analyze collected data to provide specific recommendations, ranging from improving operational processes to enhancing employee skills and service attitudes With these objectives, we hope that our project will contribute to improving not only the quality of service but also customer satisfaction and loyalty towards Highlands Coffee 1.3.2 Research scope

Our project involves a thorough assessment of service quality at Highlands Coffee, encompassing various dimensions to provide actionable insights for improvement We will engage directly with customers through surveys and interviews conducted across multiple Highlands Coffee locations to gather detailed feedback on service quality and satisfaction levels, aiming to understand customer perceptions and experiences firsthand

Additionally, we will evaluate the physical environment of Highlands Coffee outlets,

considering factors such as cleanliness, ambiance, and seating arrangements, to assess how

the physical space contributes to the overall customer experience

Furthermore, we will analyze the efficiency and effectiveness of service delivery processes, including order accuracy, waiting times, and staff responsiveness, to identify opportunities for enhancement Using statistical analysis techniques, we will explore correlations between different service quality factors and customer satisfaction metrics to provide valuable insights into their relationship

Moreover, we will benchmark Highlands Coffee's service quality standards against industry benchmarks and best practices to provide context for performance evaluation

Finally, we will consolidate our research findings, insights, and recommendations into

a comprehensive report for Highlands Coffee management, serving as a roadmap for implementing targeted improvements aimed at enhancing overall service quality and customer satisfaction across Highlands Coffee outlets Through these efforts, our project aims to contribute to the continuous improvement of service quality and customer experience

at Highlands Coffee

CHAPTER 2, LITERATURE REVIEW 2.1 Customer service quality management

2.1.1 Definition of service quality

Based on the concept that Leonard Berry & colleagues (1985) found, the consumer's perception of service quality is the result of a comparison between the expectation of the service received and the actual experience service issues after use Based on that expectation, if it is achieved, the service quality will be perceived as satisfactory and vice versa, and if it is exceeded, it will be very satisfying The research of Leonard Berry and his colleagues has had a higher development than previous studies on service quality The concept he introduced about service quality is based on the assessment of service users, not the service users The service provider may think that the quality of his or her service is high, but it 1s unlikely that service users agree They evaluate based on their own criteria and feelings In other words, Parasuraman & colleagues (1985) believe that service quality is the gap between customers' expectations and their perceptions after using the service According

to Lewis & Booms in Tjiptono (2012) Service quality is simply a measure of how well the level of service provided is able to meet customer expectations

2.1.2 Definition of customer satisfaction

Oliver (2010), when considered from a theory-based applied perspective based on a large body of work in the academic community that has only recently been Include non- academic survey Whereas, customer satisfaction according to Jahanshahi et al (2011) is

"customer satisfaction is the result of a customer's perception of the value received in a transaction or relationship - where value equels perceived service quality relative to price and customer acquisition costs" Consumption derived from the comparison against actual performance against a product and the expectation and evaluation of the experience of consuming a product or service (Ningsih & Segoro, 2014) According to the latest conceptualization of customer satisfaction by Philip Kotler & Gary Armstrong (2016) define customer satisfaction is the assumption that product performance meets buyer expectations 2.1.3 Definition of customer expectation

Expectations can be defined as “perceived potential of alternative suppliers and brands

to satisfy a number of explicit and implicit objectives in any particular buying decision”

(Sheth, 1973) Customer expectation 1s the key to customer satisfaction, delight and loyalty stated by (Kotler, 2000) Service providers must identify the needs and expectations of the

customer to achieve higher customer expectations (Arun Parasuraman, Berry, & Zeithaml,

1991) Managing and fulfilling the customer expectations is a good tool to enable the

customers satisfied (Pitt & Jeantrout, 1994)

a service that influence external customer satisfaction The key aspects of tangibility include price, ranking relative to competitors, marketing communication and actualization, and word-of-mouth effects (smagilova et al., 2019), which enhance the perception of service quality of customers (Santos, 2002)

2.2.2.2 Reliability

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Reliability is the ability to perform services in accordance with exactly what has been committed or promised that the hotel promises to do something at some point they will do

it, when you encounter an obstacle, the hotel demonstrates a genuine interest in solving that obstacle, the hotel performs the service right the first time, the hotel provided service on time

as they promised, the hotel takes note to avoid any mistakes (Tran Thi Truc Linh, 2008) Besides, Reliability also is attributed to accountability and quality There are a bunch of precursors that likewise aid basic methodology for shaping clients’ perspectives toward administration quality and reliability in the car care industry in Saudi (Omar et al., 2015) A portion of these predecessors is identified with car repair benefits and includes the convenient accessibility of assets, specialist's expertise level and productive issue determination, correspondence quality, client care quality, an exhibition of information, client esteem, proficiency of staff, representatives’ capacity to tune in to client inquiries and respond emphatically to their necessities and protests, security, workers’ dependability, more limited holding up time and quickness, actual prompts, cost of administration, accessibility

of issue recuperation frameworks, responsibility, guarantees, for example, mistake-free administrations, generally association’s picture and workers’ politeness, and responsiveness Thus, we argued that reliability is important to enhance the perception of service quality of customers (Zygiaris et al., 2022) Reliability refers to the ability to provide accurate service,

on time and reputable This requires consistency in service delivery and honoring commitments and keeping promises to customers This criterion is measured by the following scales: Businesses do it right the first tme, businesses provide services at the time they promised (Vuong Thi My, 2015)

2.2.2.3, Responsiveness

Is the level of desire and willingness to serve customers in a timely manner Hotel staff let you know when the service will be performed.Hotel staff quickly performs service for you Hotel staff are always ready to help you Hotel staff are never too busy to respond to your requests (Tran Thi Trac Linh, 2008) According to the definition responsiveness is willingness to help consumers and provide quick/punctual service (Phisunt Tinakhat et al., 2018) Responsiveness refers to the institution’s ability to provide fast and good quality service in the period It requires minimizing the waiting duration for all interactions between the customer and the service provider (Nambisan et al., 2016) explained that responsiveness

is crucial for enhancing the customers’ perception of service quality Rather, the institution should provide a fast and professional response as to the failure and recommend alternative

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actions to address the customer’s needs (Lee et al., 2000) In this light, Nambisan

summarizes responsiveness to mean four key actions, giving individual attention to customers, providing prompt service, active willingness to help guests, and employee availability when required These aspects help companies to enhance the customers’ perception of service quality (Zygiaris et al., 2022)

in tur stirs feelings of safety and comfort in the process of service delivery Customers are more likely to make return visits if they feel confident of the employees’ ability to do their tasks Elmadag et al (2008) lists the factors that inspire empathy such as competence, politeness, positive attitude, and effective communication as the most important factors in assuring customers Besides, other factors include operational security of the premises as well as the proven quality of the service provided to the customers Thus, the assurance has significant contribution in the perception of service quality (Zygiaris et al., 2022)

2.2.2.5, Empathy

Empathy is expressed in thoughtful care and attention to individual customers, thereby understanding their personal needs and preferences and trying to find ways to satisfy them (Đỗ Văn Ly, Nguyễn Thị Hà Giang & Huynh Thanh Tric, 2023) Empathy also shows thoughtfulness and care from individual customers, including: The hotel always pays special attention to you The hotel has employees who care about you The hotel takes your interests

as its main concern their concept Hotel staff understands your needs, Hotel operates at convenient hours (Tran Thi Truc Linh, 2008) More than that, Empathy in the research article Service Quality and Customer Satisfaction in the Post Pandemic World: A Study of Saudi Auto Care Industry (Sotirios Zygiaris et al., 2022) define that Empathy refers to the quality

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of individualized attention given to the customers The service providers go an extra mile to make the customer feel special and valued during the interaction (Bahadur et al., 2018) Murray et al (2019) explains that empathy requires visualizing the needs of the customer by assuming their position Murray et al (2019) lists the qualities that foster empathy as including courtesy and friendliness of staff, understanding the specific needs of the client, giving the client special attention, and taking time to explain the practices and procedure to

be undertaken in the service delivery process

2.2.3 Customer relationship management (CRM )

There are several attempted definitions made on Customer relationship management (CRM) , Swift (2001) states Customer relationship management (CRM) as “an enterprise approach to understanding and influencing customer behavior through meaning communications 1n order to improve customer acquisition, customer retention, customer loyalty, and customer profitability” The word “enterprise” in the definition above holds immense importance since CRM is an approach that must be integrated into everything a company does and must involve the whole company (Swift, 2001) Customer relationship management (CRM) is defined as the processes that enable firms to manage effectively a portfolio of profitable and sustainable relationships with key customers in order to

maximizing value for both shareholders and customers (Kim & Kim, 2009; Payne & Frow,

2005) Customer relationship management (CRM) is also the result of the evolution and integration of marketing concepts and advanced in new information and communication technologies (Chang, Park, & Chaiy, 2010)

2.2.4, Definition of NPS (net promoter score)

Net Promoter Score (NPS) is a key metric used in the tourism and hospitality industry

to gauge customer satisfaction and loyalty It is calculated by asking customers a single question: “On a scale from 0 to 10, how likely are you to recommend our service to a friend

or colleague?” Based on their responses, customers are categorized into promoters (9-10), passives (7-8), and detractors (0-6) The NPS is then calculated by subtracting the percentage

of detractors from the percentage of promoters, resulting in a score ranging from -100 to

100

In the context of tourism and hospitality, NPS is particularly valuable because it provides insights into guest satisfaction and loyalty, which are crucial for business growth and reputation management A high NPS indicates that a business is delivering a positive

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customer experience that encourages repeat visits and positive word-of-mouth Conversely, alow NPS highlights areas needing improvement to enhance guest satisfaction and loyalty

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CHAPTER 3: METHODS OF GAINING THE INFORMATION 3.1 Subjects and scope of survey

3.1.1 Survey subjects

The survey aims to analyze and evaluate the overall coffee and service market in

Ho Chi Minh City This includes assessing competition, analyzing consumer trends, and determining factors influencing Highlands Coffee's business operations

Another crucial aspect of the study is understanding the characteristics and consumption behavior of Highlands Coffee customers This involves surveying preferences, assessing demand, and identifying expectations related to coffee service Additionally, the research analyzes customer relationship management strategies The research also seeks to identify and analyze the pricing strategies and incentive policies employed by Highlands Coffee This includes examining factors influencing pricing decisions, proposed incentive strategies, and applied advertising strategies

A significant part of the study is dedicated to assessing the current status of service quality management at Highlands Coffee outlets and understanding the broader factors influencing service quality management in the tourism industry 3.1.2 Survey scope

The scope of the survey primarily focuses on Highlands Coffee outlets in Ho Chi Minh City Online data collection from these establishments includes information relevant to their business operations, service quality management, and the dynamics

of the coffee and service market in the area

Defining the research scope helps concentrate on specific areas, thus facilitating the management and collection of pertinent data Moreover, it allows for direct access and interaction with both employees and customers of Highlands Coffee However, it's important to recognize that this scope may pose limitations on the generalizability

of the research findings

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3.2 Analyze survey

Part Í: personal information

Have you experienced the service at Highlands Coffee before?/ Ban da tirng trai nghiém dich vu tai Highlands Coffee chưa?

How old are you?/ Ban bao nhiêu tuổi?

89 cau tra Idi

@ Under 18 years old/ Dui 18 tuổi

@ 18 - 25 years old/ 18 - 25 tudi

@ 26 - 35 years old/ 26- 35 tudi

@ 36 - 50 years old/ 36 - 50 tudi

@ Above 50 years old/ Trén 50 tudi

@ 22

@ Student/ Hoc sinh

@ Employed/ Nhan vién

@ Freelancer/ Lam viéc tu do

@ High school/ Cap 3

@ University/ Dai hoc

© Graduate/ Đã tốt nghiệp

® Others/ Khác

Part 2 Main survey

The atmosphere of Highlands Coffee is comforta The lighting created a comfortable and inviting atmosphere

The loudness of the music allowed you to relax or work effic The staff was willing to answe

Responsiveness

m: mã: es mm:

Ge gh wor’ or we ave 3 axe 3 ax? co ax? >) ae? xX

Empathy

m: mã &<:› m.‹ễỂ Km:

0

The atmosphere of Highlands Coffee is comforta You felt the price was suitable for the quality of products an

The beverage meet your expectations./ Đồ uống đáp ứng m You were satisfied with the ta

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Part 3 Overall experience

How likely are you to recommend Highlands Coffee to your friend or colleague on a scale of 1 to 5 where 5 means Most Lilely and 1 means Not at all .o nhất va 1 nghĩa là hoàn toàn không có khả năng?