VIETNAM NATIONAL UNIVERSITY – HO CHI MINH CITY INTERNATIONAL UNIVERSITY SCHOOL OF BUSINESS FACTOR EFFECTING GUESTS’ SATISFACTION TOWARD LUXURY HOTEL IN HO CHI MINH CITY – A MEDIATION ANALYSIS OF PERCEIVED SERVICE QUALITY In Partial Fulfillment of the Requirements of the Degree of MASTER OF BUSINESS ADMINISTRATION In International Business Major By Ms Ngo Hoai Diem Nga ID: MBA05022 International University - Vietnam National University HCM Jan 2014 FACTOR EFFECTING GUESTS’ SATISFACTION TOWARD LUXURY HOTEL IN HO CHI MINH CITY – A MEDIATION ANALYSIS OF PERCEIVED SERVICE QUALITY In Partial Fulfillment of the Requirements of the Degree of MASTER OF BUSINESS ADMINISTRATION In International Business Major By Ms Ngo Hoai Diem Nga ID: MBA05022 Business School, International University, Vietnam National University, HCMC Jan 2014 Under the guidance and approval of the committee, and approved by all its members, this thesis has been accepted in partial fulfillment of the requirements for the degree Approved: Advisor: Dr Mai Ngoc Khuong Chairperson Committee member Committee member Committee member Committee member ACKNOWLEDGEMENT I would like to express my thanks to all those who gave me the opportunity to complete this dissertation I am honored to give my deepest gratitude to Dr Mai Ngoc Khuong, who offered me valuable ideas and suggestions throughout the process of the research I also owe my thankfulness to these close friends They not only assisted me in conducting the survey but also shared their networks by contacting the managers of the hotels where I collected the data I would also like to acknowledge the encouragement I received from all of them Most importantly, my special appreciation goes to my parents for their thoughtfulness and encouragement all the way from the very beginning of my education i LIST OF ABBREVIATIONS Abbreviations Equivalence TAN Tangible EMP Empathy REL Reliability IMAGE Hotel image PRICE Price PERSEQUA Perceived service quality GUESATIS Guest satisfaction IDV (s) Independent variables DV(s) Dependent variables ii PLAGIARISM STATEMENT I would like to declare that, apart from the acknowledged references, this thesis either does not use language, ideas, or other original material from anyone; or has not been previously submitted to any other educational and research programs or institutions I fully understand that any writings in this thesis contradicted to the above statement will automatically lead to the rejection from the MBA program at the International University – Vietnam National University Ho Chi Minh City iii COPYRIGHT STATEMENT This copy of the thesis has been supplied on condition that anyone who consults it is understood to recognize that its copyright rests with its author and that no quotation from the thesis and no information derived from it may be published without the author’s prior consent © Ngo Hoai Diem Nga / MBA05022 / 2012 -2014 iv Table of Contents ACKNOWLEDGEMENT i LIST OF ABBREVIATIONS ii COPYRIGHT STATEMENT iv List of Tables .x List of Figures xi CHAPTER I – INTRODUCTION .1 1.1 Background of the study 1.2 The problem statement 1.3 Research question 1.4 Research objectives 1.5 Limitation and scope of the study 1.6 Structure of the study 1.7 Chapter summary 10 CHAPTER II - LITERATURE REVIEW 11 2.1 Concepts 12 a Tangible 13 v b Responsibility 13 c Empathy 13 d Assurance 13 e Reliability 14 f Price 14 g Hotel image 15 h Service quality 16 i Perceived service quality 16 j Perceived value 19 k Customer satisfaction 21 l The European Customer Satisfaction Index (ECSI) model 23 m Relationship among Hotel Image, Service Quality, Perceived Value, and Customer Satisfaction 25 2.2 Conceptual framework 25 2.3 Research hypothesis 26 2.4 Chapter summary 28 CHAPTER III - RESEACRH METHODOLOGY 30 vi 3.1 Target population, population sample size 30 3.2 Research instrument 30 3.3 Data collection 34 3.4 Data analysis 35 3.5 Reliability test 39 3.6 Validity test 40 3.7 Chapter summary 50 CHAPTER IV - RESEARCH FINDING 51 4.1 Introduction 51 4.2 Characteristic of sample 51 4.2.1 Demographic characteristic of the sample 51 4.2.2 Descriptive statistic of variable 54 4.3 Hypothesis testing 56 4.3.1 Multiple regression 56 4.3.2 Factor affect to perceive service quality 58 4.3.3 Factor affect to guest satisfaction 62 vii 4.3.4 Effect of perceived service quality to guest satisfaction 65 4.3.5 Direct and indirect effects on guest satisfaction 67 4.3.7 Summary of path analysis 72 4.4 Chapter summary 73 CHAPTER V - CONCLUSION AND FINDING .74 5.1 Summary and discussion of the finding 74 5.1.1 Relationships between IDVs and the guest satisfaction 74 5.1.2 Direct effect on guest satisfaction 77 5.1.3 Indirect effect on guest satisfaction 78 5.2 Implication of the study 79 5.3 Chapter summary 84 REFERENCE .85 Appendix 1: English Questionnaire xii Appendix 2: Vietnamese questionnaire xvii Appendix 3: Factor effect perceived service quality xxiii Appendix 4: Factor affect to Guest satisfaction xxix Appendix 5: Factor perceived service quality affect to guest satisfaction xxxvi viii PRICE: Price 277 277 277 277 277 277 REL: Reliability 277 277 277 277 277 277 277 277 277 277 277 277 IMAGE: Hotel Image Model Summaryb Model R R Square Adjusted R Std Error of the Square Estimate Change Statistics R Square F Change df1 df2 Change 879a 773 769 48515 Sig F Change 773 184.304 271 000 a Predictors: (Constant), IMAGE: Hotel Image, PRICE: Price, EMP: Empathy, TAN: Tangible, REL: Reliability b Dependent Variable: PERSEQUA: Perceived Service Quality ANOVAa xxvi Model Sum of Squares Regression Residual Total Df Mean Square 216.898 43.380 63.785 271 235 280.683 276 F 184.304 Sig .000b a Dependent Variable: PERSEQUA: Perceived Service Quality b Predictors: (Constant), IMAGE: Hotel Image, PRICE: Price, EMP: Empathy, TAN: Tangible, REL: Reliability xxvii Collinearity Diagnosticsa Variance Proportions Model Dimension Eigenvalue Condition Index (Constant) IMAGE TAN: EMP: PRICE: REL: Tangible Empathy Price Reliability : Hotel Image 5.924 1.000 00 00 00 00 00 00 028 14.539 55 01 05 07 02 09 016 19.469 36 02 01 93 00 00 014 20.814 01 01 41 00 01 77 011 22.982 05 38 49 00 13 13 007 28.878 03 57 04 00 83 01 a Dependent Variable: PERSEQUA: Perceived Service Quality xxviii Appendix 4: Factor affect to Guest satisfaction Descriptive Statistics Mean GUESATIS: Hotel Guests' Std Deviation N 5.3690 91749 277 TAN: Tangible 5.2942 99271 277 EMP: Empathy 5.3833 1.14217 277 PRICE: Price 5.2383 97363 277 REL: Reliability 5.3303 1.07081 277 IMAGE: Hotel Image 5.1588 1.12894 277 Satisfaction Correlations xxix GUESATIS: TAN: EMP: PRICE: REL: IMAGE: Hotel Guests' Tangible Empathy Price Reliability Hotel Image Satisfaction GUESATIS: Hotel 1.000 711 686 377 671 586 TAN: Tangible 711 1.000 710 566 795 701 EMP: Empathy 686 710 1.000 564 760 693 PRICE: Price 377 566 564 1.000 597 557 REL: Reliability 671 795 760 597 1.000 745 IMAGE: Hotel Image 586 701 693 557 745 1.000 000 000 000 000 000 TAN: Tangible 000 000 000 000 000 EMP: Empathy 000 000 000 000 000 Guests' Satisfaction Pearson Correlation GUESATIS: Hotel Guests' Satisfaction Sig (1-tailed) xxx PRICE: Price 000 000 000 000 000 REL: Reliability 000 000 000 000 000 IMAGE: Hotel Image 000 000 000 000 000 277 277 277 277 277 277 TAN: Tangible 277 277 277 277 277 277 EMP: Empathy 277 277 277 277 277 277 PRICE: Price 277 277 277 277 277 277 REL: Reliability 277 277 277 277 277 277 IMAGE: Hotel Image 277 277 277 277 277 277 GUESATIS: Hotel Guests' Satisfaction N Model R R Adjusted Std Change Statistics xxxi Square R Error of Square the R F df1 df2 Square Change Sig F Change Estimate Change 769a 591 583 59214 591 78.323 271 000 Predictors: (Constant), IMAGE: Hotel Image, PRICE: Price, EMP: Empathy, TAN: Tangible, REL: Reliability xxxii Dependent Variable: GUESATIS: Hotel Guests' Satisfaction ANOVAa Model Sum of df Mean Square F Sig Squares Regression Residual Total 137.312 27.462 95.021 271 351 232.333 276 000b 78.323 a Dependent Variable: GUESATIS: Hotel Guests' Satisfaction b Predictors: (Constant), IMAGE: Hotel Image, PRICE: Price, EMP: Empathy, TAN: Tangible, REL: Reliability Coefficientsa Model Unstandardized Standardized Coefficients Coefficients B Std Error Beta t Sig Correlations Collinearity Statistics Zero-order Partial Part Tolerance VIF xxxiii (Constant) 1.817 220 8.272 000 TAN: Tangible 381 063 412 6.026 000 711 344 234 323 3.100 EMP: Empathy 278 052 347 5.377 000 686 310 209 363 2.755 -.152 048 002 377 128 066 150 1.950 052 671 118 076 257 3.898 028 051 035 578 586 034 022 383 2.614 PRICE: Price REL: Reliability IMAGE: Hotel Image -.161 3.186 558 -.190 124 592 1.690 a Dependent Variable: GUESATIS: Hotel Guests' Satisfaction Collinearity Diagnosticsa Model Dimension Eigenvalue Condition Index Variance Proportions (Constant) TAN: EMP: PRICE: REL: IMAGE: Tangible Empathy Price Reliability Hotel Image xxxiv 5.924 1.000 00 00 00 00 00 00 028 14.539 55 01 05 07 02 09 016 19.469 36 02 01 93 00 00 014 20.814 01 01 41 00 01 77 011 22.982 05 38 49 00 13 13 007 28.878 03 57 04 00 83 01 a Dependent Variable: GUESATIS: Hotel Guests' Satisfaction xxxv Appendix 5: Factor perceived service quality affect to guest satisfaction Descriptive Statistics Mean GUESATIS: Hotel Guests' Satisfaction PERSEQUA: Perceived Service Quality Std Deviation N 5.3690 91749 277 5.4085 1.00845 277 Correlations Pearson Correlation GUESATIS: Hotel Guests' Satisfaction GUESATIS: PERSEQUA: Hotel Guests' Perceived Satisfaction Service Quality 1.000 721 xxxvi PERSEQUA: Perceived Service Quality GUESATIS: Hotel Guests' Satisfaction 721 1.000 000 000 277 277 277 277 Sig (1-tailed) PERSEQUA: Perceived Service Quality GUESATIS: Hotel Guests' Satisfaction N PERSEQUA: Perceived Service Quality Model Summaryb Model R R Adjusted Std Error Change Statistics xxxvii Square 721a 520 R Square 519 of the R Square F Estimate Change Change 63656 520 df1 df2 Sig F Change 298.363 275 000 a Predictors: (Constant), PERSEQUA: Perceived Service Quality b Dependent Variable: GUESATIS: Hotel Guests' Satisfaction ANOVAa Model Sum of Squares df Mean Square Regression 120.900 120.900 Residual 111.433 275 405 Total 232.333 276 F 298.363 Sig .000b a Dependent Variable: GUESATIS: Hotel Guests' Satisfaction b Predictors: (Constant), PERSEQUA: Perceived Service Quality Coefficientsa xxxviii Model Unstandardized Standardized Coefficients Coefficients B Std Error t Sig Beta Correlations Collinearity Statistics Zero- Partial Part Tolerance VIF order (Constant) PERSEQUA: Perceived Service Quality 1.819 209 8.704 000 656 038 721 17.273 000 721 721 721 1.000 1.000 a Dependent Variable: GUESATIS: Hotel Guests' Satisfaction Collinearity Diagnosticsa Model Dimension Eigenvalue Condition Index Variance Proportions (Constant) PERSEQUA: Perceived Service Quality xxxix 1.983 1.000 01 01 017 10.838 99 99 a Dependent Variable: GUESATIS: Hotel Guests' Satisfaction xl .. .FACTOR EFFECTING GUESTS? ?? SATISFACTION TOWARD LUXURY HOTEL IN HO CHI MINH CITY – A MEDIATION ANALYSIS OF PERCEIVED SERVICE QUALITY In Partial Fulfillment of the Requirements of the Degree of. .. service quality so as to enable the hospitality industry to reach international standards However, no customer satisfaction data are available for the hotel industry specifically And each hotel has... ? ?FACTOR EFFECTING GUESTS? ?? SATISFACTION TOWARD LUXURY HOTEL IN HO CHI MINH CITY – A MEDIATION ANALYSIS OF PERCEIVED SERVICE QUALITY ” 1.3 Research question From problem statement, the study raises