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Shu Te UniversityCollege of ManagementGraduate School of FinanceMasterThe Influence of Ground Service Quality and Inflight Service Quality on Customer Satisfaction: A case study of Vietnam AirlinesStudentShu Te UniversityCollege of ManagementGraduate School of FinanceMasterThe Influence of Ground Service Quality and Inflight Service Quality on Customer Satisfaction: A case study of Vietnam AirlinesStudent：Kim Thi Thu HuyenAdvisor: Dr. PKim Thi Thu HuyenAdvisor: Dr. PiiYen ChenCoAdvisor: Dr. Ho Thuy NgocJune, 2014ShuTe UniversityGraduate School of FinanceThesisThe Influence of Ground Service Quality and Inflight Service Quality on Customer Satisfaction: A case study of Vietnam AirlinesKim Thi Thu HuyenJune 2014
Shu - Te University College of Management Graduate School of Finance Master The Influence of Ground Service Quality and In-flight Service Quality on Customer Satisfaction: A case study of Vietnam Airlines Student： Kim Thi Thu Huyen Advisor: Dr. Pi-Yen Chen Co-Advisor: Dr. Ho Thuy Ngoc June, 2014 Shu-Te University Graduate School of Finance Thesis The Influence of Ground Service Quality and In- flight Service Quality on Customer Satisfaction: A case study of Vietnam Airlines Kim Thi Thu Huyen June 2014 The Influence of Ground Service Quality and In-flight Service Quality on Customer Satisfaction: A case study of Vietnam Airlines Student: Kim Thi Thu Huyen Advisor: Dr. Pi-Yun Chen Co-Advisor: Dr. Ho Thuy Ngoc A Thesis Submitted to Graduate School of Finance College of Management Shu-Te University In Partial Fulfillment of the Requirements for the Degree of Master of Business Administration Majoring in Finance June 2014 Shu-Te University Graduate School of Finance The Influence of Ground Service Quality and In-flight Service Quality on Customer Satisfaction: A case study of Vietnam Airlines Student ： Kim Thi Thu Huyen Advisors ： Dr. Pi-Yun Chen Co-Advisor: Dr. Ho Thuy Ngoc Abstract The airlines service chain includes the following services: - Ticket purchase - Check-in service - Airports service - Boarding service - In-flight service - Arrival - Post-arrival service However, this research only analyze the influence of Ground service quality ( Check-in service, Airports service, Boarding service) and In-flight service quality which are services directly related to flights on Vietnam Airlines’ customer satisfaction. There are many kind of model which can be applied to study the relationship between Service quality and customer satisfaction such as SERVQUAL Model developed by Parasuraman (1985), SCSB model developed by Fornell (1992), the ACSI model developed by Fornell (1996), ECSI model developed by Eklof (2000). The researcher selected the American Customer Satisfaction Index – ACSI model for this i research to analyze the relationship between service quality and customer satisfaction and the level in model. The research method is quantitative with multivariate statistical analysis steps such as: testing by Cronbach Alpha coefficient, regression analysis. The online questionnaire was used for this research to collect the Vietnam Airlines’ customer opinion about the Vietnam Airlines’ services. From the analyzing of 134 respondents, result of the research shown that service quality had different level of impact on customer satisfaction at each step of service in which service quality has extremely strong impact on customer satisfaction in term of Check-in service, Boarding service and In-flight service. Service quality has weak impact on customer satisfaction in Airport service due to this service not only offer by Vietnam Airlines but also offer by the other company. Base on the result of the analysis, it can be concluded that the service quality has important role for service provider such as Vietnam Airlines to improve their competitiveness. In addition, the research results also show some suggestion for improving the Vietnam Airlines services as well as indicate the limitations of the research. Keywords: Service quality, Customer Satisfaction, Customer complaint, Airline service, ACSI model ii Acknowledgements During the performance of this thesis, I have received much assistance from the people who help me to complete the thesis. I could not finish this thesis without helping form them, so I wanted to express my deep gratitude to those people. First, I would like to express my most sincere thanks to the teachers of the University SHU-TE and the Foreign Trade University Hanoi, Vietnam who taught me and helped me throughout the course. Next, I would like to express my special thanks to Dr. Pi Yun Chen from University of SHU-TE and Dr. Ho Thuy Ngoc from Foreign Trade University Hanoi, Vietnam who are my advisors and gave me guidance and useful feedback to complete the thesis. I would like to thank my MBAF4 classmates who shared document and help me during the implementation of this research. I also thanks for my colleagues who work in Vietnam Airlines especially the people working in Marketing Department and Planning & Development Department. They help me to get the Vietnam Airlines service information and delivering the questionnaire to the Vietnam Airlines’ Frequent Flyer Program’ members. I would like to thank my friend in Vietnam Airlines Informatics Department who help me to collect and analyze the data of this thesis. Finally, I really thank my family who gave me mobilization and encouraged me during the learning process and the implementation of this thesis. Thank you very much! Kim Thi Thu Huyen (MBAF4 – SHU-TE University) iii Table of Contents Abstract i Table of Contents iv List of Figures x CHAPTER 1 INTRODUCTION 1 1.1. Research background 1 1.1.1. Introduction to the context of the Aviation Industry in the world 1 1.1.2. The context of the Aviation Industry in Viet Nam and Vietnam Airlines 2 Table 1. Vietnam Airlines Fleet to 2018 3 1.1.3. The necessity of researching the influence of service quality on Vietnam Airrlines’ customer satisfaction 3 1.2. Research motive 4 1.3. Research purposes 5 1.4. Research questions 6 1.5. Research procedure 6 2.1. Services in Airline Industry 8 2.1.1. Services Chain in airlines industry 9 2.1.2. Airlines Service attributes 11 2.2. Service quality, Customer satisfaction 15 2.2.1. Service quality 15 2.2.2. Customer Satisfaction 23 2.2.3. Relationship between Airline Service quality and Customer satisfaction 26 2.3. The evolution of satisfaction index model 27 CHAPTER 3 RESEARCH DESIGN 32 3.1. Research model 32 3.1.1. Selected model 32 3.1.2. Reason to select the ACSI 34 3.2. Research hypotheses 34 3.3. Measurement of variables 37 3.4. Data collection and analysis 38 3.4.1. Research method 38 3.4.2. Questionnaire design 39 iv 3.4.3. Sampling method and sample size 42 3.4.4. Data collection 43 CHAPTER 4 RESEARCH RESULT 44 4.1. Sample description 44 4.1.1. Highlights of Vietnam Airlines’ customers 44 4.1.2. Demographic information 45 4.2. Reliability, hypothesis test and discussion 47 4.2.1. Check-in service (CI) 47 Table 6. Data of regression PVCI from ECI, SQCI 48 Table 7. Data of regression SCI from PVCI 49 Table 8. Data of regression CCI from SCI 50 Figure 15. Result of ACSI in case of Vietnam Airlines Check-in Service 52 4.2.2. Airports Service (AS) 52 Table 10. Data of regression PVAS from EAS, SQAS 53 Model Summary 53 ANOVAa 53 Coefficientsa 53 Table 11. Data of regression SAS from PVAS 54 Table 12. Data of regression CAS from SAS 54 4.2.3. Boarding Service (BS) 56 Table 14. Data of regression PVBS from EBS, SQBS 57 Model Summary 57 ANOVAa 57 Coefficientsa 57 Table 15. Data of regression SBS from PVBS 58 Table 16. Data of regression CBS from SBS 59 4.2.4. In-flight Service (IS) 61 Table 47. Result of Reliability Test for Inflight service 61 v Table 18. Data of regression PVIS from EIS, SQIS 62 Model Summary 62 ANOVAa 62 Coefficientsa 62 Table 19. Data of regression SIS from PVIS 63 Model Summary 63 ANOVAa 63 Coefficientsa 63 Table 20. Data of regression CIS from SIS 63 4.2.5. Overall service 65 CHAPTER 5 CONCLUSION 70 5.1. Findings and contribution 71 5.1.1. Findings for Vietnam Airlines Services 71 5.1.2. Contribution 73 5.2. Implication 74 5.2.1. Check-in service 75 5.2.2. Airport service 75 5.2.3. Boarding service 76 5.2.4. In- flight service 77 5.2.5. For Vietnam Airlines employees 77 5.3. The limitations of the research 80 [1] Angelova, B., Measuring Customer Satisfaction with Service Quality Using American Customer Satisfaction Model (ACSI Model), Full Professor at Ss Cyril and Methodius University, Economic Institute, Prolet nr 1, Skopje- Macedonia 82 [13]Lee, H.S. (2013) “Major Moderators Influencing the Relationships of Service Quality, Customer Satisfaction and Customer Loyalty” Asian Social Science; Vol. 9, No. 2; 2013 ISSN 1911-2017 E-ISSN 1911-2025 Published by Canadian Center of Science and Education http://dx.doi.org/10.5539/ass.v9n2p1 83 APPENDIX 2: PASSENGER SURVEY (VIETNAMESE) 96 vi vii List of Tables Abstract i Table of Contents iv List of Figures x CHAPTER 1 INTRODUCTION 1 Table 1. Vietnam Airlines Fleet to 2018 3 CHAPTER 3 RESEARCH DESIGN 32 CHAPTER 4 RESEARCH RESULT 44 Table 6. Data of regression PVCI from ECI, SQCI 48 Table 7. Data of regression SCI from PVCI 49 Table 8. Data of regression CCI from SCI 50 Figure 15. Result of ACSI in case of Vietnam Airlines Check-in Service 52 Table 10. Data of regression PVAS from EAS, SQAS 53 Model Summary 53 ANOVAa 53 Coefficientsa 53 Table 11. Data of regression SAS from PVAS 54 Table 12. Data of regression CAS from SAS 54 Table 14. Data of regression PVBS from EBS, SQBS 57 Model Summary 57 ANOVAa 57 Coefficientsa 57 Table 15. Data of regression SBS from PVBS 58 Table 16. Data of regression CBS from SBS 59 Table 47. Result of Reliability Test for Inflight service 61 Table 18. Data of regression PVIS from EIS, SQIS 62 viii [...]... flight was started in 9/1956 2 On 27/05/1995, Vietnam Airlines Company Limited was established based on associating 20 enterprises operating the business of aviation service, taking Vietnam Airlines as the core In 2006, Vietnam Airlines officially became the member of International Air Transport Association and affirmed the quality of service bearing its international standard On 10/6/2010, Vietnam Airlines. .. Improving the quality of passenger service at Noibai Airport Services Joint-Stock Company by Le Duc Long, 2000; Evaluation target and research on product quality of VNA by Nguyen Manh Quan, 2004 However, there is no research on influence of service quality on customer satisfaction and customer loyalty As a staff of VNA, in front of the competition of VNA and with the aspiration of contributing a part into... complained much about service quality of Vietnam Airlines such as meal on the plane, entertainment system, seat, service attitude of staff, especially regular happening of delay or cancellation of flight (Vietnam airlines quarterly survey report 2012) On the other hand, on international airlines, VNA must regularly compete with long-term and famous aviation firms: in the region, there are Singapore Airlines, ... Research questions This research to be done to find out the factors impacting on the customer satisfaction for Vietnam airlines in field of Ground Service and In-flight service The affected level of each factor impact on customer satisfaction Especially, the research focuses on defining the influence of Ground service quality and In-flight service quality on Vietnam Airlines customer satisfaction Thus,... Thai Airways, and All Nipon Airways; in the world, there are British Airway, Lufthansa, Air France… In Vietnamese market, at present, VNA must compete with many domestic aviation firms such as Mekong Air, Jetstar Pacific, Vietjet Air Hence, Vietnam Airlines must improve the service quality to satisfy at the maximum level the demand of customers and consolidating and improving the competitive capacity... Customer satisfaction Customer satisfaction can be identified as the customer' s evaluation of a product service in terms of whether that product or service has met the customer' s expectations and demand (Valarie et al., 2006) Satisfaction can be associated with the feel of pleasure, feeling of fulfillment, ambivalence and relief with a mix of negative and positive experience Customer satisfaction can be... capacity of VNA (Vietnam Airlines Sources) If not improving the service quality, it also means that VNA will lose gradually the market in not only international market but also in Vietnamese market From the past up to now, there were many researches in the field of aviation For example, the research on quality of aviation service such as Solution on expanding the market of VNA by Tran Thi Phuong Hien,... as well as a comparison of customer expectations with service performance Hence, service quality can be said as the fulfillment between current service level and customer expectations Park et al (2004) define service quality as a consumer’s overall impression of efficiency of an organization and its services Thus, customer satisfaction is a change made based on a specific service Chen & Chang (2005)... VNA 2 Understand clearly the feature of each service type in the aviation service series and require the quality corresponding to each service type; have thorough grasp of actual situation of aviation service quality, from that point, determine which service aspect needs maintaining the quality and which service aspect needs improving 3 As understanding clearly the nature of factors at sections 1, 2,... Industry 8 2.1.1 Services Chain in airlines industry Gliatis and Minis (2007) define that a service is a series of processes; and each of those processes creates a different value for a service Each value of service depends on service attributes (characteristics) Similarly, Chen and Chang (2005) say that airline service as a chain of services; each service is made of a sequence of processes A service process . Airlines Student： Kim Thi Thu Huyen Advisor: Dr. Pi-Yen Chen Co-Advisor: Dr. Ho Thuy Ngoc June, 2014 Shu-Te University Graduate School of Finance Thesis The Influence of Ground Service Quality and In- flight. Student ： Kim Thi Thu Huyen Advisors ： Dr. Pi-Yun Chen Co-Advisor: Dr. Ho Thuy Ngoc Abstract The airlines service chain includes the following services: - Ticket purchase - Check-in service - Airports. Airlines Kim Thi Thu Huyen June 2014 The Influence of Ground Service Quality and In-flight Service Quality on Customer Satisfaction: A case study of Vietnam Airlines Student: Kim Thi Thu Huyen Advisor: