Khóa luận tốt nghiệp tiếng anh:THE INFLUENCE OF SERVICE QUALITY ON CUSTOMER SATISFACTION IN THE FOOD BEVERAGE INDUSTRY IN VIETNAM: A CASE STUDY IN THE SYSTEM THE GIOI NGHIENG 2305 RESTAURANTS

Table of content Chapter 1: Introduction 1.1 Research Background 1.2 Research Motive 1.3 Research Purpose 1.4 Research Procedure Chapter 2: Literature Review 2.1 Review the service quality, perceived service quality, customer satisfaction 2.2 Relationship between Service quality and customer satisfaction 2.3. Review some Models used to analyze service quality and customer satisfaction Chapter 3: Research Design 3.1 Selected model and reason to modify model 3.2 Research hypotheses 3.3 Measurement of Variables 3.4 Data Collection Chapter 4: Research Result 4.1 Sample description 4.2 Reliability and Validity of Variable 4.3 Descriptive Statistics of Variable 4.4 Hypotheses test 4.5 Discussion Chapter 5: Conclusion 5.1 Finding and Contribution 5.2 Implication 5.3 Limitation References 3 Abstract This research applies the development of the tool 22 in SERVQUAL model to evaluate the quality of service customers receive in TGN2305 restaurant system. Following past research on the concepts and the operation of the construction quality of service received impact on customer satisfaction, research steps undertaken to measure the satisfaction level of customers in time of the study. Evidence of reliability and scale, the effectiveness of research and based on analysis of over 300 studies research model. The study conclusions about the relationship between quality of service received and customer satisfaction. Pointing out the expansion in future research.

THE INFLUENCE OF SERVICE QUALITY ON

CUSTOMER SATISFACTION IN THE FOOD &

BEVERAGE INDUSTRY IN VIETNAM: A CASE STUDY

RESTAURANTS

Student name: Nguyen Manh Huy Advisor: Dr Pi Yun Chen Co-Advisor: Dr Ho Thuy Ngoc

A Thesis Submitted to the Graduate School of Finance

Shu - Te University For the Degree of Master of Business Administration

Majoring in Finance

May 2014

Chapter 2: Literature Review

2.1 Review the service quality, perceived service quality, customer satisfaction 2.2 Relationship between Service quality and customer satisfaction

2.3 Review some Models used to analyze service quality and customer satisfaction

Chapter 3: Research Design

3.1 Selected model and reason to modify model

4.2 Reliability and Validity of Variable

4.3 Descriptive Statistics of Variable

in time of the study Evidence of reliability and scale, the effectiveness of research and based

on analysis of over 300 studies research model The study conclusions about the relationship between quality of service received and customer satisfaction Pointing out the expansion in

future research

Keyword: service quality, customer satisfaction, SERVQUAL, food and beverage industry,

Thegioinghieng2305 restaurant

Acknowledgments

First of all I would like to sincerely thank him (her) Department of Finance, Shu-Te University, Taiwan, and the Faculty of International Training, Foreign Trade University in Hanoi, Vietnam has dedicated teaching and impart knowledge, valuable experience during Master of Business Administration Financial courses

I would like to express special thanks to Dr Pi-Yun Chen, who has been the subject oriented and dedicated to guide and protect me during the course of this thesis

I also thank Dr Ho Thuy Ngoc who has created the best conditions, encourage and cheer me during the process of learning and research to complete this final thesis

The researchers was done nearly 10 years working in the field of restaurants, hotels; business activities mainly in the food & beverage industry

In the context of international integration and economic growth will impact and change many elements in food industry, a question for researchers is: will such changes How

to habits of consumers in the industry; and how to measure the factors that influence decisions and customer satisfaction in the food & beverage industry

To find answers to these questions, the researchers began by learning about the history

of the culinary industry in the world and the current state of food & beverage industry in Vietnam

1.1 Research background

1.1.1 The industry of food and beverage worldwide

Based on the time available, the food and beverage industry appears earlier than the most other industries From primitive times, humans have known hunting and gathering to ensure the survival, adaptation and development Over millions of years of evolution and development of human society and, food & beverage is still the most important needs for every person, no matter in any country or culture in the world

F&B is a common abbreviation for "Food and Beverage" in the United States

and Commonwealth countries, including Hong Kong The sector/industry specializes in the conceptualization, making, and delivery of food Most F&B employees work in restaurants and bars, such as at hotels, resorts, and casinos Food & beverage (food & beverage that is

complete) is a special system of views and traditional cooking practices, often associated with

a particular culture It is often named after the region or the current culture A main dish is influenced by the ingredients available locally or through trade, trade exchange These colors bring food religion has a strong influence to the cuisine

…

Here are characteristic culinary culture of some countries in the world such as China, Japan, France, It is the country with long-standing cuisine, typical of the region and affect current much to the culinary culture of Vietnam

Chinese cuisine originated from different regions of China and has spread around the

world There is a huge cultural differences between different regions of China and thus lead to the difference between the cuisine of regions of China There are eight major culinary regions

in China: Anhui, Cantonese, Fujian, Hunan, Jiangsu, Shandong, Szechuan, and Zhejiang

A meal according to Chinese cultural injured two main components: (1) supply of flour called “main diet”, usually rice, noodles, or mantou, and (2) together with foods like vegetables , meat, fish, or otherwise known as “vegetables” It is this cultural concept is somewhat different from the cuisine of northern Europe and the U.S., where people considered meat or animal protein is the main food, and in common with most of the cuisines

of the Mediterranean region Hai, mainly based on the foods made from wheat, such as pasta

or cous cous

Rice is the most important part of Chinese cuisine, however, many areas in China, especially northern China, the products made from wheat, such as pasta and assorted dumplings (as mantou) is dominant, as opposed to southern China where rice is the staple However, in many cases, the side dishes and rice is used later use as fried rice Soup is often

used before and after a meal in South China Chopsticks are eating utensils of China (Chinese

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Japanese cuisine is the cuisine originating from Japan Japanese cuisine is not too

spicy abuse that highlights the emphasis on fresh flavors, pure natural food Japanese dishes often taste ethereal, gentle nature and consistent with each season Due to the geographical position are surrounded by four sea surface, seafood and seaweed make up the bulk of the Japanese diet Japanese staple food is rice; Japanese rice rolled in seaweed sheets of dark green, making sushi, is considered Japan national implementation In addition, food processing soy has special significance in Japanese cuisine Regarding drinks, famous for degenerate Japanese tea, pure green tea powder by processing the teacher; Here are the main types of tea for tea ceremony, rituals follow four main principles of “peace, respected, gracious, chaste” Rice Wine sakamai high concentrations name sake, derived from the Shinto ceremonies are also popular In addition, Japanese cuisine also shows subtle aesthetic thinking and ingenuity of the cook when furnished with only a few pieces at a corner of the dishes, so diners can see beauty of food items containers

The Japanese dishes are rules to follow, “three-five”: five tastes, five colors, five measures Includes five tastes: sweet, sour, bitter, salty Iridescence have: white, yellow, red, green, black Grammar is: life, security, grilled, fried and steamed Compared with other countries, Japanese cuisine is almost never used spices Instead, we focus on the pure taste of

the food ingredient: fish, seaweed, vegetables, rice and soybeans (Japanese cuisine (n.d.)

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France is a country of culinary art and exquisite richness The French gourmet and

very seriously about eating French cuisine is famous for wines, cheeses and dishes such as

snails and foie gras fat Each region has its very own uniqueness Eastern had crepes, Saumur wine and cider Northern champagnevoi famous brands such as Veuve Cliquot, Roederer, Heidseik, Moët & Chandon, Laurent-Perrier Central to many types of cheese, cognac and white wine Sancerre Southwest with fatty foie gras and Bordeaux wine brand Particularly Paris is very famous for its coffee and cafes Coffee here in species diversity as well as serving form

The traditional French dishes used a lot of fat Today, eating habits have changed or rance, they eat very little at dinner and breakfast to be the most important meal of the day

The potato brought to urope was harles de l’ cluse, the son of the city of Arras (French

The easy option and there are many more options with the well-known culinary product makes consumers tend to pay more attention to factors such services as on-time delivery, and service style, the important care center, From this starting stage where quality

of service is seen as part of the process of consumer products cuisine

1.1.2 The industry of food and beverage in Viet Nam

Culinary Vietnam is calling the method of cooking, spice blending principles and

general eating habits of Vietnamese people in the country of Vietnam But most have some differences, culinary Vietnam still implied generalized to refer to all the popular dishes in the community of ethnic minorities but were relatively common in the Vietnamese community

Additionally Vietnam territory is divided into three distinct regions, North, Central and South Main characteristics of geography, culture, ethnicity, climate regulation the specific characteristics of each region cuisine - domain Each domain has a sharp taste characteristics That contributed to Vietnam rich culinary diversity This is a cultural food uses a lot of vegetables (boiled, fried, making pickle, eaten raw); types of water especially sour soup, while the number of nutritious foods from animals less often What kind of meat is used most commonly pork, beef, chicken, geese, duck, crawfish, fish, crabs, snails, mussels, clams, oysters, etc These dishes from the less common meats such as dog meat, goat meat, turtle meat, snake meat, turtle meat usually not the main source of meat, sometimes considered specialty and is only used during a certain festival associated with drinking alcohol The Vietnamese also have a number of Buddhist vegetarian dishes made from plants

A few more characteristics also distinguish cuisine Vietnam with other countries: Vietnam cuisine focuses delicious but sometimes do not set goals is a leading food supplements So in the Vietnamese system of culinary dishes very little fussy, stewed security techniques like Chinese cuisine, also not in favor of aesthetic garnish altitude as Japanese cuisine, but in favor of coordination spice mix in a subtle way to get delicious food, or using tough materials, Enjoy crispy interesting though not really fat supplements (such as bamboo dishes

Cuisine of Vietnam 9 features:

1 Sociability or diversity;

2 As little fat;

3 As of flavor;

4 As the sum total of many qualities, many;

5 As tasty and healthy;

6 As with chopsticks;

7 Community or collectivity;

8 Hospitality;

9 As the wheels move

Vietnam Cuisine featuring the middle of mixing ingredients not too spicy, too sweet

or too fatty The extra ingredients (spices) to Vietnam processed foods are abundant

Didier Corlou - chef of the Sofitel Hotel in Vietnam cuisine is family He enjoy exploring to find out about special sauces available in all daily meals Vietnam regardless of budget or luxury He went through a lot of land famous for fish sauce, perceived and experienced countless interesting stories (source: http://www.vntravellive.com/news/chuyen-gia-noi-ve-am-thuc-viet-862.html)

According to Dr Nguyen Nha - Institute of Food Research Vietnam, Vietnam cuisine took root natural, delicious and healthy again recently Very little fat, less meat, more vegetables and fruits From the raw material to the accompanying spices, are also eaten fresh During cooking, the Vietnamese prefer boiled, steamed to retain the natural taste of food (source: http://www.mysonsanctuary.com.vn/tam-diem/60/480/xay-dung-thuong-hieu-quoc-gia-cho-am-thuc-va-pho-viet/)

While enjoying the food, mixing nature a synthetic material above become clearer as Vietnamese people rarely eat any particular food, enjoy each dish, which is usually a meal totality food meal from start to finish A new feature of Vietnam cuisine that other countries, especially Western countries do not have the spicy sauce Fish sauce is frequently used in most dishes of Vietnam There are also sauces like soy sauce, soy sauce (soy) Sauce bowl of

rice on a platter to share, from past to present as bold taste more dishes taste better characterized and characterization of close-knit community of Vietnamese people

Despite the above general definition, cuisine Vietnam have different characteristics in each region, though in each region of the sub-regional cuisine also shows characteristics

Northern cuisine is often not the bold spicy, fatty, sweet in other areas, primarily

using diluted fish sauce, shrimp paste Use more vegetable dishes and fresh seafood readily as shrimp, crab, fish, clams, mussels etc and generally, ancient traditions have poor agriculture, Northern cuisine at prevailing before the main dish with raw meat, fish Many people appreciate a cuisine Hanoi, said that it is the most typical representative of the culinary elite northern Vietnam with the pho, bun thang, bun cha, the Round gift as nuggets, rolls cake Thanh Tri etc and special spices like belostomatid oil, basil Lang

Southern Cuisine is where much influenced by Chinese cuisine, Cambodia, Thailand,

are characterized by a merchant or use more sugar and coconut milk (juice and coconut water creep) This cuisine also spawned numerous kinds of dried fish (Such as colorful fish sauce, fish sauce dropout, three aspects sauce etc) Southern cuisine is also used more seafood than saltwater and brackish North (fish, shrimp, crabs, sea snails), and very special to the rustic, typical of a time to expand the country now they have become more specialties: TAL coconut water voles, bats attractive welcome, cobra green bean porridge land, track, dirt road or street dates, Vop pallet, snakehead trui etc

Food in Central region to all of its special nature expressed through distinct flavor,

spicy and salty foods more than food north and south, blended colors rich, brilliant, natural color red and dark brown The central cities like Hue, Da Nang, Binh Dinh famous sauce with shrimp and tomatoes the kind of shrimp sauce In particular, the influence of Hue cuisine from royal cuisine, so very picky in processing and presentation On the other hand, do not have much local produce royal cuisine that requires a large amount of food, every kind of processed materials are very diverse with many different dishes

With 54 ethnic groups living in diverse geographic regions throughout the country, every ethnic cuisine of the ethnic communities in Vietnam have separate identities Many of these little dishes known in other nations, such as pork mixed phèo young life of Highland peoples However, many dishes have become specialties of Vietnam and the country was known as the South dropout sauce, egg rolls (Cao Bang, Lang Son), consistent Coong cake (Tay ethnic group), Pig milk and honey roast duck hook, humiliation Lang Son password, tomato soup, porridge bee larvae, longer pho effervescent, trying to win, grill dishes of the Thai sticky rice, meat, sour Thanh Son, Phu Tho, etc

Characteristics focus is more delicious food supplements, along with typical culinary Vietnam sociable nature and community, these things are more or less influenced style of dining Vietnam This represents at most restaurants in Vietnam are open to serve customers in the sale of the curb, street, corner, with style mainly self-service, low service requirements Therefore, during a long time, Vietnam cuisine is known for its cuisine “sidewalk” along with vermicelli brand as Vermicelli “scold” Ngo Si Lien, Porridge “cursed” Ly Quoc Su, Noodle soup “queue” Bat Dan,

According to the Vietnamese’s footsteps around the world, Vietnamese cuisine with all its character gradually known to many in other countries like South Korea, Laos, China and European countries have Vietnamese community occupant You can easily find

restaurants Vietnam in the United States, Canada, France, Australia, Czech Republic, Germany, Poland and Russia Net Vietnamese dishes like pho, spring rolls and special spices such as shrimp paste, basil is very popular in the east Asian region, including Vietnamese, live However cuisine Vietnam in countries around the world have more or less hybridized with the native cuisine, or reducers, changing to better suit the taste of local communities around the world

In the context of global economic integration, Vietnam joined the World Trade Organization WTO 11/1/2007, become a member Economic Cooperation Forum Asia - Pacific APEC dated 15/11 / 1998, Vietnam targets of the integration period is 2020 to expand bilateral cooperation, multilateral, comprehensive cooperation in the fields of politics, economy, society with all partners and friends around the world

Also during this period, more than 10 years ago, along with the achievements in the fields of politics - society, economy, Vietnam has also changed markedly, especially in the field of real estate, construction, commercial, a lot of commercial office complex, new urban centers, shopping centers, entertainment was formed and developed Along with the formation and development of many fast food chains, restaurant cuisine with famous brands

in the world such as KFC, Burger King, McDonald, Lotteria, or domestic brands emerging

in Vietnam as: Seoul Garden, SumoBBQ, Highland Coffee, Long Dinh Restaurant, Thegioinghieng 2305 Restaurant,

1.1.3 Introduce about the Thegioinghieng 23 0 5 restaurants

The Thegioinghieng 2305 restaurant system under Thanh Long Co.,Ltd the offices in P307A - An Sinh building - Cau Dien Ward - Nam Tu Liem District - Hanoi The main fields

of activity of the Thanh Long Co.,Ltd.: restaurant business, providing mobile catering services, food supply organic and clean food, has almost 200 employees working at the Thanh Long Co., Ltd

The Thegioinghieng 2305 restaurants system includes three restaurants: The Thegioinghieng 2305-My Dinh restaurant, The Thegioinghieng 2305-Me Tri restaurant and The Thegioinghieng 2305-Phuc Dien restaurant These are all well-known restaurant, leaving

a strong impression with diners by the food product diversity, richness, room service, caring and training space most unique architecture in Hanoi

In December 2007, the first Thegioinghieng 2305 restaurant established at address:

235 Le Duc Tho Street, My Dinh commune, Tu Liem district, Hanoi city, known nicknamed

“Thegioinghieng 230

5-My Dinh” Since its establishment new restaurant has made a strong impression that the space unique architecture, delicious food is incredible After a short time the restaurant has become the largest restaurant in the district of Tu Liem Located Stadium

My Dinh National 500m long, with spacious grounds, parking areas should facilitate Thegioinghieng-My Dinh is the first choice of customers in the region Features of the restaurant's biggest architectural space "strange" and "unique" to run around the lake restaurant, with red tile roofs combine antique decorative lighting, deep, luxurious dining room … giving a feeling of comfort, especially while enjoying the rich food "in the sky, in the woods, in the sea" come from all regions of the country

The Thegioinghieng 2305-Me Tri restaurant was established in April, 2012 at 235, the

Me Tri road, Me Tri commune, Tu Liem district, Hanoi city (Opposite Big C-The Garden, The Senior Urban Mannor) Located within walking distance of the National Conference of about 1000m with extensive parking and convenience, along with the rich variety of dishes, culinary specialties of the region created great attraction for customers Coming with Thegioinghieng 2305-Me Tri, you will feel a cool space with a combination of stilt houses, lakes, gardens, restaurant architecture in harmony with the natural course

Thegioinghieng 2305-Phuc Dien restaurant was established in August 2012 at 235, the Van Tien Dung road, Phuc Dien Commune, Tu Liem District, Hanoi As the restaurant has the largest area in the space sector and most unique architecture in Tu Liem district, along with an extensive menu, introduced from many famous chefs in Hanoi, restaurant Thegioinghieng 2305-Phuc Dien location is attractive to many customers

Customers of the restaurant Thgioinghieng 2305 quite diverse: from children to the elderly, working in state agencies and freelance business, both male and female, living in Hanoi and other provinces; however the main focus age from 25 years to 45 years, customers mainly Vietnam, less foreign customers, who often come in and work near the restaurans

Currently, in doing this research, the Thanh Long Co., Ltd has invested Thegioinghieng 2305 new restaurant in a location near the Noi Bai International Airport, scheduled to open in May 7/2014 Due to near Noi Bai International Airport to the new restaurant will have the opportunity to welcome more international visitors to come into operation officially

1.2 Research motive

The appearance of continuity, diversity of many food products come from cultures different culinary world and Vietnam contributed to the food industry in the country flourished, especially in about 10 years Eating habits of consumers and also changing very much influenced cuisine styles from around the world Today, as in a store or restaurant, customers not only enjoy good food, drinks appealing but also receive care, enthusiastic service attentive restaurant staff The concept of service quality and customer attention and prompted many more Increasingly, service quality factors become increasingly important, have much impact on the customers’ decision when choosing dining venues

Quality catering only be accurately assessed through the perception of the consumer direct product: Quality of service depends on the customers’ perception, the process of creating and consumer services occurred almost identical in space and time Therefore, the quality of catering services only through accurate assessment of customer perception The customer is a member, and no shortage of direct involvement in the evaluation process They are the “main character” in service activities performed in restaurant dining as the consumer food services So that customers had an insider’s perspective, both of who look out to buy restaurant products

For customers not directly consumer products will not be able to accurately assess the quality of customer service From this characteristic that the restaurant managers want to accurately assess the quality of services provided to their restaurant stood on customer

perception of consumers directly, to learn and respect the requirements and wishes of the client

Quality catering services depends on the quality of the implementation conditions of food service restaurants: the implementation process of restaurant services should be based on the facilities of the restaurant and the waiter directly in the restaurant Visitors came to the restaurant just for the purpose of eating, just to satisfy psychological Guests always want to

be in a comfortable space, luxury and enthusiastic service attentive Therefore, customers also rely on facilities and human factors of the restaurant to assess the quality of services restaurant Employees want to complete customer service work should have appropriate equipment to better serve the customer If the restaurant does not equip the staff and equipment necessary to fully staff the staff work hard to ensure attentive customer service

Thus, quality catering services subject depends on the quality of the conditions for the provision of services The facilities of the restaurant to achieve comfort, luxury and modern The aesthetics of the restaurant and the safety of the installation, the equipment used must be commensurate with rank of restaurant

Therefore, assessment of the quality of customer service of the restaurant is the most accurate If the customers’ perception of food service that offers restaurant is good, the level

of customer satisfaction as high

Quality of service in the restaurant in Vietnam, especially in Hanoi and the northern provinces is quite different than the southern provinces and the restaurant chain by opening foreign investors in Vietnam These studies and surveys on service quality in restaurants in Vietnam in general and Hanoi in particular have not been clearly indicate the relationship between quality of service received and customer satisfaction

Based on customer perspective is most important, all efforts are towards customer satisfaction, food industry needed a specific study on the factors affecting the quality of service and image impact of service quality to customer satisfaction

Therefore, a specific study on the impact of service quality to customer satisfaction in the Thegioinghieng 2305 is required The study results indicated besides the relationship between service quality and customer satisfaction can contribute to improve and enhance the service quality and increase customer satisfaction in restaurant food Hanoi in Vietnam and across the country

1.3 Research purposes

The purpose of the study is to apply modify SERVQUAL, based on the SERVQUAL model (Parasuraman et al., 1988) model to study the effects of service quality to customer satisfaction in the culinary industry in Vietnam through specific case studies at the Thegioinghieng 2305 restaurants

This study focuses at three main purposes:

- First, to measure the level of satisfaction of existing customers;

- Second, to identify the key factors affecting customer satisfaction using quantitative methods;

- Third, to measure the magnitude of the impact of factors affecting customer satisfaction

• Step 3: Modify the model applying based on the SERVQUAL model

• Step 4: Data Collection for customer satisfaction in the food and beverage industry in Vietnam as a whole and in the Thegioinghieng 2305 restaurants

• Step 5: Data Analysis

• Step 6: Research Findings

• Step 7: Conclusion

Chapter 2: Literature review

This chapter will define what are the service quality, perceived service quality, customer satisfaction and introduce some previous service quality models; moreover, it will describes

the details of SERVQUAL model

Stemming from research engines and three research purpose of this thesis, the research

to find out the title of the main factors, which include: Service Quality, Perceived service quality, ustomers’ satisfaction, and the relationship of the these factors

Based on these studies, the impact materials have on service quality on customer satisfaction in the food & beverage industry in the world, researchers would like to examine it in Vietnam market Wishing additional aspects that previous studies have not addressed in market cuisine and beverages Vietnam

In particular, during the study, the researchers found no project of this research in Vietnam

2.1 Review the service quality, perceived service quality, customer satisfaction

2.1.1 Service quality

For a long time, many researchers have tried to define and measure service quality For example, Lehtinen & Lehtinen (1982) for the quality of service must be judged on two aspects, (1) the service provider and (2) the results of the service Grönroos (1984, p.36) also proposed two components of service quality, including (1) technical quality, which is what customers receive and (2) functional quality, interpretation services are available What level However, when it comes to service quality, we can not fail to mention the huge contribution

of Parasuraman & et al (1988, 1991) Parasuraman & et al (1988, page 17) defines service quality is the degree of difference between the expectations of the consumers of services and their perceptions about the results of service These authors have initiated and used qualitative research and quantitative expertise to build and scale components of service quality (called SERVQUAL scale) SERVQUAL scale was adjusted and tested in many different types of services Finally SERVQUAL scale consists of 22 variables to measure five components of service quality, such as: reliability, responsiveness, assurance, tangibles and empathy Parasuraman & et al (1991) asserts that the SERVQUAL scale complete service quality, achieve value and reliability, and can be applied to all different types of services However, each specific service sectors have their own characteristics Many other researchers have also tested this scale with many types of services as well as in many other countries The results showed that the components of service quality is not consistent with each other in each sector and each service different markets (Bojanic, 1991; Cronin & Taylor, 1992, p.125; Dabholkar

& et al, 1996; Lassar & et al, 2000 , Mehta & et al, 2000; Nguyen & et al, 2003)

It is showed that quality of service industries including food and beverage (restaurant chain case TGN2305) includes the following components: reliability, accessibility, the ability

to serve of personnel, empathy, and tangible media To conclude, due to the characteristics of

each type of service should researchers have to adjust the SERVQUAL scale to suit each particular study

2.1.2 Perceived service quality

Parasuraman and his colleagues (1988, p.17) defined perceived service quality as “the consumer’s judgment about the superiority or excellence of a product,” and confirmed the five-dimension model

Gronroos (2000, p.395) has given three elements having impacts on service quality, which are: functional quality, technical quality and corporate image Functional quality deals with the relationship between provider and customer in a service performance In comparison with technical quality, functional quality is more important as functional quality decided the way technical quality if delivered to customers

Omachonu,Johnson and Onyeaso,2008) explained that according to the American Customer Satisfaction Index (ACSI), customer expectations are evaluated by asking the customer to recall the level of quality they expected on the basis of their knowledge about service or goods and actual experience with a goods or services

The gap between perceived and expected quality can be well measured

by SERVQUAL (Hamer, 2006) Hence,Perceived Service Quality = Service Perception – Service Expectation

2.1.3 Customer satisfaction

Customer satisfaction with products and services is understood as the satisfaction of customer transactions in the period directly and can now be understood as dealing with the presence or absence of human Members provide services Research on customer satisfaction for two types of service transactions described above will help organizations find strategic services to serve customers most effectively, and help businesses attract, maintain and growing number of loyal customers, thereby enhancing the competitiveness of enterprises as well as local As summarized by the researchers, the increasing satisfaction of customers will generate emotional states associated with a service brand, not only create psychological factors in purchasing decisions of customers

Motto of the company is to satisfy the business needs of the customer because the customer revenue and profitability of the company When customers are satisfied with the goods or services of the companies they buy the ability to continue to purchase very high Moreover, when they are satisfied they tend to speak well of the company’s services to other customers The consumer satisfaction for the emotional service for company business services based on each contact or dealings with that company (Bitner & Hubbert, 1994)

Service quality and satisfaction, though the two concepts are different but closely related to each other in the study of services (Parasuraman & et al, 1988) The previous studies have shown that quality of service is the cause of satisfaction (eg Cronin & Taylor, 1992) The reason is related to the quality of service delivery, and satisfaction were assessed only after using the service If quality is improved but not based on the needs of the customer

is never satisfied with the customer service Therefore, when using the service, if customers perceive high quality service, then they will be satisfied with the service Conversely, if customers perceive lower service quality, it will not appear satisfied On this basis, we hypothesized as follows: The relationship between service quality dimensions of industries including food and beverage, and satisfaction with the service food and beverage industry

2.2 Relationship between Service quality and customer satisfaction

In relating customer satisfaction and service quality, researchers have been more precise about the meaning and measurements of satisfaction and service quality Satisfaction and service quality have certain things in common, but satisfaction generally is a broader concept, whereas service quality focuses specifically on dimensions of service (Wilson et al.,

2008, p.78) Although it is stated that other factors such as price and product quality can affect customer satisfaction, perceived service quality is a component of customer satisfaction (Zeithaml et al 2006, p 106-107) This theory complies with the idea of Wilson et al (2008) and has been confirmed by the definition of customer satisfaction presented by other researchers

The literature review shows latest researches up to 2011 on the relationship between customer satisfaction and service quality The researches in this area have been covered so far

The ACSI was started in 1994 by researchers at the National Quality Research center,

a research unit within the university of Michigan, in cooperration with partner at the American society for quality in Mlwaukee, wsconsin and CFI group in Ann Arbor

The ACSI was based on a model originally implemented in 1989 for the Swedish economy called the Swedish customer

Satisfaction Barometer (SCCB), both the swedish version and the ACSI were developed by Claves Fornell, now Donald Ccook professor of business administration at the university of Michigan, and chairman of CFI group

Fig 1 The ACSI (American customer satisfaction model)

The ACSI uses customer interviews as input to a multi-equation economic model

developed at the University of Michigan’s Ross school of business The ACSI model embeds

customer satisfaction within a service of cause and effect relationships In the model, indices

for the driver of customer satisfaction are on the left side (customer expectations perceived

quality and perceived value), customer satisfaction (ACSI) is in center and the outcomes of

customer satisfaction are on the right side (Customer complaints and customer loyalty,

including customer retention and price tolerance)

The indicated (shown in the diagram below) are multivariable components measured

by several questions that are weighted within the model The question assess customer

evaluations of the determinants of each index Indices are reported on a 0 to 100 scale The

survey are modeling methodology quantifies the strength of the effect of the index on the left

to the one to which the arrow points on the right There arrows represent “impacts” The

ACSI model is self – weighting to maximize the explanation of customer satisfaction (ACSI)

on customer loyalty Looking at the indices and impact, users can determine which driver of

satisfaction, if improved, would have most effect on customer loyalty

2.3.2 The ECSI model

ECSI (European Customer satisfaction Index) is an analytical tool, designed to

provide a sound basis for selecting the right marketing strategy With ECSI the company can

find out which factors most important to the creation of customer satisfaction and loyalty

ECSI was intiated by the EU commission in colabordition with the European

organization for qualities (EOQ) along with a network of universities and business school

ECSI technical committee has developed the method of analysis which is so called

economictric model and causality analysis

The EU orginally innitiated the development of ECSI heavily inspired by the US,

where a similar tool (ACSI) has been very successful That tool was developed by Swedish

Perceived

quality

Customer Loyalty

Customer Complaints

Customer

expectations

satisfaction (ACSI)

professor Claes Fornell, one of the world leading experts in the measurement and analysis of customer satisfaction and loyalty

Fig 3 The ECSI (European Customer Satisfaction Index) model

2.3.3 The original SCSB

The original SCSB model (Fornell, 1992), shown in Fig 1, contains two primary antecedents of satisfaction: perceptions of a customer’s performance experience with a product or service, and customer expectations regarding that performance More specifically, perceived performance is equated with perceived value, or the perceived level of quality received relative to the price or prices paid Quality per dollar or value is a common denominator that consumers use to compare brands and categories alike (Emery, 1969) The basic prediction is that as perceived value increases, satisfaction increases

The other antecedent of satisfaction is how well the customer expected the product or service to perform Customer expectations are defined as that which a customer predicts (“will” expectations) rather than a normative standard or benchmark (“should” expectations; Boulding, Kalra, Staelin, & Zeithaml, 1993)

Fig 1 The original SCSB (Swedish Customer Satisfaction Barometer) model

The original SCSB includes a relationship from complaint behavior to customer loyalty Although no prediction is made regarding this relationship, the direction and size of this relationship provides some diagnostic information as to the efficacy of a firm’s customer service and complaint handling systems (Fornell, 1992) When the relationship is positive, a firm may be successfully turning complaining customers into loyal customers When negative, complaining customers are predisposed to exit

2.3.4 Nordic model

In this model, Gronroos determined perceived quality based on a comparison between expected quality and experienced quality of the buyers On the right side of the image, both technical and functional aspects play significant role in enhancing experienced quality While most people come to service providers to meet their technical needs, the manner in which service is delivered gives a more enduring memory

Company image is the only factor that appears in both sides of the model, meaning it has the power to both customer expectation and perception According to Gronroos, organization has to work on both sides of the model to give customer a best satisfaction: not only trying their best to provide customer with better service quality everyday but also controlling expected quality at an acceptable and achievable level

Perceived Performance (Value)

Customer Expectations

Customer Satisfaction (SCSB)

Customer Complaints

Customer Loyalty

Figure 2.4: Nordic model

Source: Gronroos, 1984

2.3.5 SERVQUAL model

Servqual or parter is a service quality frame work Servequal was developed in the mid – 1980s by Zeithaml, Parasuraman & Berry Servqual means to measure the scale of quality in the service sectors

Servqual was orginally measured on 10 aspects of service quality It measures the gap between customer can evaluate a firm’s service by comparing their perceptions with their expectations

Servqual has its detractors and is considered overly complex, subjective and satistically unreliable

The ten determinants that may influence the appearance of the gap were:

Tangibles quality

Reliability Quality

Pesponesiveness Quality

Assurance quality

Empathy quality

Perceived service quality

Fig3 RATER model

The parasureman, Zeithaml, and Berry (1988) theory of the determinants of perceived quality

Chapter 3 - Research Design

This chapter provide research model, the reason why to modify the SERVQUAL model and the way of data collection and how the data shall be analyzed

3.1 Selected model and reason to modify model

3.1.1 Modified model

This study uses and modifies the SERVQUAL model of Parasuraman et al (1988) due to:

-The study to measure current customer satisfaction level using quantitative approach

- The study wants to evaluate the influence between service quality and customer satisfaction in the F&B industry in Viet Nam;

- The study wants to find out how service quality affect to customer satisfaction

Tangibles are the physical evidence of the service, for instance, the appearance of the

physical facilities, tools and equipment used to provide the service; the appearance of personnel and communication material and the presence of other customers in the service facility

Accessibility is the ability of service provider (location, parking area, operating hours

…) so that customers can best use the services

Reliability is the ability to perform the promised service in a dependable and accurate

manner The service is performed correctly on the first occasion, the accounting is correct, records are up to date and schedules are kept

Responsiveness is to the readiness and willingness of employees to help customer in

providing prompt timely service, for example, mailing a transaction slip immediately or setting up appointments quickly

Assurance are the knowledge and courtesy of employees and their ability to inspire

trust and confidence

Empathy is caring individualized attention the firm provides to its customers

Perceived service quality can be defined as the customer's perception of the overall

quality or superiority of a product or service with respect to its intended purpose, relative to alternatives

Customer satisfaction is understood as the satisfaction of customer transactions in

the period directly and as dealing with the presence or absence of human members provide services

3.1.2 Reason to modify model

According to previous studies in this sector service restaurant chains, hotels, the ability can approach greatly contributes to the choice of the customers as well as quality of service customers receive

Moreover, in order to measure attributes specific to the … environment, the following items were added: “parking area” (Pizam and llis 1999), “appropriate location (Snoj and Ogorelc 1998)

In fact, there are not many customers of restaurant choices in access difficulties and move to, as well as struggling to parking at the restaurant, especially during peak hours and in zones Ha Noi inner suburbs Therefore accessibility is important factor in choosing a restaurant, and affects quality of service

Therefore, in this study, I have more marginal accessibility model SERVQUAL model aimed at measuring the impact of accessibility to quality of service received

3.2 Research hypotheses

The purpose of this study is to confirm the relationship between service quality and customer satisfaction

For organizations or any individual, appearance is always important There should be

a confirmation of whether appearance of facility, service staff or necessary equipment to

perform the task has influence on customer satisfaction H1: Tangibility has a positive

impact on perceived service quality

The accessibility of customers is one of the important factors to perform service

quality It has a major influence on customer satisfaction as to the restaurant H2:

Accessibility has a positive impact on perceived service quality

Reliability is rated as one factor in the quality of service It affects customer satisfaction through various ways, such as punctuality, professional work, ensure safety, etc…

H3: Reliability has a positive impact on perceived service quality

Responsiveness has always been regarded as an important factor of the service

industry because it reflects the organization’s willing of satisfying customers H4:

Responsiveness has a positive impact on perceived service quality

Assurance is necessary to assess its effect on customer satisfaction, through a

quantitative manner in order to provide a clear and exact result with reliable numbers H5:

Assurance has a positive impact on perceived service quality

Empathy also helps to express sympathy and respect to customer These hypothesis

show positive statement, therefore it fits the positive of the questions in my survey H6:

Empathy has a positive impact on perceived service quality

As the customers do not satisfy with the service of TGN2305, the customers will complain/claim the service of TGN2305 H7: Perceived service quality has a positive

impact on customer satisfaction

mployees’ appearance 3 TGN2305's employees are well dressed

and appear neat

Material

4 The appearance of the physical facilities

of TGN2305 is in keeping with the type of services provided as menu, pamphlets, website etc

Reliability

Keeping the promise

7 When TGN2305 promises to do something by a certain time, it does so

ustomer’s problem solving 8 When you have problems, TGN2305 is

sympathetic and reassuring

Perform the service 9 TGN2305 is dependable

Provide the service 10 TGN23

Promised service 13 You do not receive prompt service