Customer satisfaction, return intention and word of mouth at the coffee bean tea leaf in the vietnamese market

CUSTOMER SATISFACTION, RETURN INTENTION AND WORD-OFMOUTH AT THE COFFEE BEAN & TEA LEAF IN THE VIETNAMESE MARKET In Partial Fulfillment of the Requirements of the Degree of MASTER OF BUSINESS ADMINISTRATION In International Business By Ms: Nguyen Thi Da Thao ID: MBA05039 International University - Vietnam National University HCMC August 2014 CUSTOMER SATISFACTION, RETURN INTENTION AND WORD-OFMOUTH AT THE COFFEE BEAN AND TEA LEAF IN THE VIETNAMESE MARKET In Partial Fulfillment of the Requirements of the Degree of MASTER OF BUSINESS ADMINISTRATION In International Business by Ms.: Nguyen Thi Da Thao ID: MBA05039 International University - Vietnam National University HCMC August 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 by: Approved by: ---------------------------------------------- ---------------------------------------- Advisor ---------------------------------------------Committee member ---------------------------------------------Committee member Chairperson ---------------------------------------Committee member ---------------------------------------Committee member INTERNATIONAL UNIVERSITY SOCIALIST REPUBLIC OF VIETNAM SCHOOL OF BUSINESS Independence - Freedom - Happiness ASSURANCE QUALIFIED THESIS Student’s Name: Nguyễn Thị Dạ Thảo Student ID: MBA05039 Title of Thesis: Customer Satisfaction, Return Intention and Word-of-Mouth at The Coffee Bean & Tea Leaf in the Vietnamese market Advisor: Dr. Trương Quang Được I assure that the content of this thesis has been qualified all requirements for a research paper and able to participate in the final thesis defense. Approved by Acknowledgement The Master Thesis would not be finished without the support and assistance of many people. I would like to take this chance to thank all of you that have helped and encouraged during the period of writing this paper. Firstly, I would like to express my gratitude to my advisor, Dr. Truong Quang Duoc who provided me valuable advice, supported and guided me from the beginning. I also would like to thank Mr. Khanh who instructed me to deal with data analysis and offered helpful recommendations to my thesis. My thanks also go to all of my friends, younger sisters and colleagues, who helped me to distribute questionnaires, collect them, encourage and facilitate conditions for me to finish this research. Last but not least, I would like to express my special appreciation to all my family members such as dad, mom and younger sister, who always love, sympathize, support and encourage me. Plagiarism Statements 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 Hochiminh City. 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. © Nguyen Thi Da Thao/ MBA05039/2012—2014 CONTENTS CHAPTER ONE: INTRODUCTION ........................................................................................ 1 1. Background: ............................................................................................................... 1 2. General information of The Coffee Bean & Tea Leaf: .............................................. 2 3. Rationale for study: .................................................................................................... 3 4. Research Problem / Questions: .................................................................................. 4 5. Research Objectives : ................................................................................................. 5 6. Significance of the research: ...................................................................................... 5 7. Scope and limitation: ................................................................................................. 5 8. Research Methodology: ............................................................................................. 6 9. Structure of the Thesis: .............................................................................................. 6 CHAPTER TWO: LITERATURE REVIEW ............................................................................ 8 1. Customer Satisfaction: ............................................................................................... 8 2. Service Quality: ......................................................................................................... 9 3. The relationship between customer satisfaction and service quality: ........................ 9 4. Measurement of Service Quality in the restaurant industry: ................................... 10 5. The relationship between Food Quality ( Beverage Quality) and Customer Satisfaction:..................................................................................................................... 12 6. The relationship between Price _Value and Customer Satisfaction: ....................... 13 7. Return Intention and Word-of-mouth: ..................................................................... 14 8. The relationship between customer satisfaction and behavior intentions (return intention and word-of-mouth): ........................................................................................ 15 9. Conceptual Framework: ........................................................................................... 16 10. Research Hypothesis: ........................................................................................... 17 CHAPTER THREE: METHODOLOGY ................................................................................ 18 1. Research Process:..................................................................................................... 18 2. Research Design: ..................................................................................................... 18 3. Data Collection Method: .......................................................................................... 19 4. 3.1 Sample Selection: ............................................................................................. 19 3.2 Questionnaire Design: ...................................................................................... 20 3.3 Pilot Test:.......................................................................................................... 22 3.4 Distributing Questionnaire: .............................................................................. 22 Data Analysis: .......................................................................................................... 23 CHAPTER FOUR: ANALYSIS & RESULTS ....................................................................... 26 1. Response Rate: ......................................................................................................... 26 2. Sample Characteristic: ............................................................................................. 26 3. Descriptive Statistics:............................................................................................... 34 4. Reliability Analysis:................................................................................................. 39 4.1 Reliability ......................................................................................................... 39 4.2 Tangibles .......................................................................................................... 41 4.3 Assurance.......................................................................................................... 42 4.4 Responsiveness ................................................................................................. 43 4.5 Empathy ................................................................................................................ 44 4.6 Beverage Quality .................................................................................................. 44 4.7 Price and Value .................................................................................................... 45 4.8 Satisfaction ........................................................................................................... 46 5. Exploratory Factor Analysis: ................................................................................... 47 5.1 Independent Variables: ......................................................................................... 47 5.2 Dependent Variable: ......................................................................................... 57 5.3 Confirmation of Conceptual Framework:......................................................... 59 6. Pearson product-moment correlation coefficient: .................................................... 59 7. Regression Analysis: ................................................................................................ 61 8. Reliability Analysis:................................................................................................. 64 8.1 Return Intention ................................................................................................ 64 8.2 Word-of-mouth ................................................................................................. 65 9. Exploratory Factor Analysis: ................................................................................... 65 9.1 Return Intention ................................................................................................ 65 9.2 Word-of-mouth .................................................................................................... 67 10. Pearson product-moment correlation coefficient: ................................................ 68 10.1 Correlation between customer satisfaction and Return Intention ................. 68 10.2 Correlation between customer satisfaction and Word-of-mouth ........................ 69 11. Simple Linear Regression Analysis: .................................................................... 70 11.1 Return Intention: ........................................................................................... 70 11.2 Word-of-mouth: .................................................................................................. 72 12. Important Difference among Gender, Age Group in Overall Satisfaction: ......... 73 12.1 Important Difference among Gender .................................................................. 73 12.2 Important difference among Age Groups ........................................................... 74 CHAPTER FIVE: CONCLUSIONS & RECOMMENDATIONS.......................................... 77 1. Conclusions:............................................................................................................. 77 2. Recommendations: ................................................................................................... 78 2.1 Improving Price and Value is the first importance ............................................... 78 2.2 Improving Assurance of Service Quality is the second importance ..................... 79 2.3 Improving Responsiveness of Service Quality is the third importance ................ 80 2.4 Improving Beverage Quality is the fourth importance ......................................... 80 2.5 Improving Tangible is the fifth importance .......................................................... 81 2.6 Improving Empathy is the sixth importance ......................................................... 81 2.7 Improving Reliability is the seventh importance .................................................. 81 3. Limitations and Future Research: ............................................................................ 82 REFERENCES ........................................................................................................................ 83 APPENDIX A – QUESTIONNAIRE (ENGLISH VERSION)............................................... 94 APPENDIX B – QUESTIONNAIRE (PHIÊN BẢN TIẾNG VIỆT) ...................................... 99 LIST OF FIGURE Figure 1: Structure of the thesis ..................................................................................... 7 Figure 2: The Conceptual Framework ......................................................................... 17 Figure 3: Research Process .......................................................................................... 18 Figure 4: Gender Differences....................................................................................... 27 Figure 5: Nationality .................................................................................................... 28 Figure 6: Age ............................................................................................................... 29 Figure 7: Average Income per month .......................................................................... 30 Figure 8: Frequency Level ........................................................................................... 31 Figure 9: With Whom .................................................................................................. 32 Figure 10: Favorite Location ....................................................................................... 34 LIST OF TABLE Table 1: Frequency Analysis by SPSS – Gender Differences ........................................... 27 Table 2: Frequency Analysis by SPSS – Nationality.......................................................... 28 Table 3: Frequency Analysis by SPSS – Age .................................................................... 29 Table 4: Frequency Analysis by SPSS – Average Income per month ............................... 30 Table 5: Frequency Analysis by SPSS – Frequency Level................................................ 31 Table 6: Frequency Analysis by SPSS – With Whom ....................................................... 32 Table 7: Frequency Analysis by SPSS – Favorite Location .............................................. 33 Table 8: Meaning of Mean toward Interval Scale .............................................................. 35 Table 9: Descriptive Statistics of Dimension ― Reliability 1-5‖ ........................................ 35 Table 10: Descriptive Statistics of Dimension ―Tangibles 1-10‖ ....................................... 36 Table 11 : Descriptive Statistics of Dimension ―Assurance 1-6‖ ...................................... 37 Table 12: Descriptive Statistics of Dimension ―Responsiveness 1-6‖ ............................... 37 Table 13: Descriptive Statistics of Dimension ―Empathy 1-5‖ .......................................... 37 Table 14: Descriptive Statistics of Dimension ―Beverage Quality 1-4‖............................. 38 Table 15: Descriptive Statistics of Dimension ―Pride and Value 1-4‖ ............................... 38 Table 16: Descriptive Statistics of Dimension ―Return Intention 1-3‖ .............................. 39 Table 17: Descriptive Statistics of Dimension ―Word of Mouth 1-3‖................................ 39 Table 18: Reliability Analysis applied to Reliability .......................................................... 40 Table 19: Reliability Analysis applied to new Reliability .................................................. 41 Table 20: Reliability Analysis applied to Tangibles ........................................................... 42 Table 21: Reliability Analysis applied to Assurance .......................................................... 43 Table 22: Reliability Analysis applied to Responsiveness ................................................. 43 Table 23: Reliability Analysis applied to Empathy ............................................................ 44 Table 24: Reliability Analysis applied to Beverage Quality .............................................. 45 Table 25: Reliability Analysis applied to Price and Value ................................................. 46 Table 26: Reliability Analysis applied to Satisfaction ........................................................ 47 Table 27: KMO and Bartlett's Test – 37 variables .............................................................. 47 Table 28: Result of Principal Component Analysis – Independent Factors – 37 variables 49 Table 29: Result of Rotation Method as Varimax with Kaiser Normalization – 37 variables ............................................................................................................................................. 50 Table 30: KMO and Bartlett's Test – 36 variables .............................................................. 51 Table 31: Result of Principal Component Analysis – Independent Factors – 36 variables 52 Table 32: Result of Rotation Method as Varimax with Kaiser Normalization – 36 variables ............................................................................................................................................. 54 Table 33: KMO and Bartlett's Test – 35 variables .............................................................. 54 Table 34: Result of Principal Component Analysis – Independent Factors – 35 variables 55 Table 35: Result of Rotation Method as Varimax with Kaiser Normalization – 35 variables ............................................................................................................................................. 57 Table 36: KMO and Bartlett‘s Test .................................................................................... 58 Table 37: Result of Principal Component Analysis – Dependent Factor ........................... 59 Table 38: Result of Pearson Correlation Coefficient .......................................................... 60 Table 39: Variables Entered/Removedb .............................................................................. 61 Table 40: Model Summary of Multiple Linear Regression ................................................ 62 Table 41: Coefficients ......................................................................................................... 62 Table 42 : ANOVA ............................................................................................................. 62 Table 43: Reliability Test applied to Return Intention ....................................................... 64 Table 44: Reliability Test applied to Word-of-mouth ........................................................ 65 Table 45: KMO and Bartlett's Test ..................................................................................... 66 Table 46: Result of Principal Component Analysis – Return Intention ............................. 67 Table 47: KMO and Bartlett's Test ..................................................................................... 67 Table 48: Result of Principal Component Analysis – Word-of-mouth .............................. 68 Table 49: Result of Pearson Correlation Coefficient between Customer Satisfaction and Return Intention .................................................................................................................. 69 Table 50: Result of Pearson Correlation Coefficient between Customer Satisfaction and Word-of-mouth ................................................................................................................... 70 Table 51: Model Summary of Simple Linear Regression .................................................. 70 Table 52: ANOVAb............................................................................................................. 71 Table 53: Coefficientsa........................................................................................................ 71 Table 54: ANOVA .............................................................................................................. 72 Table 55: Coefficientsa........................................................................................................ 73 Table 56: Test of Homogeneity of Variances - Gender ...................................................... 74 Table 57: One-way ANOVA Test - Gender ....................................................................... 74 Table 58: Test of Homogeneity of Variances – Age Groups.............................................. 74 Table 59: One – way ANOVA Test – Age Groups ............................................................ 75 Table 60: Multiple Comparisons – Age Groups ................................................................. 75 Abstract Purpose – This research is carried out to find out main factors contributing on the customer satisfaction of The Coffee Bean & Tea Leaf in the Vietnamese market and discover the relationship of it towards return intention and word-of-mouth endorsement. These factors are measured by DINESERV model which is developed from SERVQUAL instrument to gauge service quality in the restaurant industry Moreover, the conceptual framework also combines with two addition elements which are studied from other papers. Design/methodology/approach – Adopting a case study approach, data were collected through secondary and primary data. A questionnaire was distributed to 420 participants (including 42 foreigners and 378 Vietnamese at fourteen branches of Coffee Bean in Ho Chi Minh City. Findings – There are seven key elements resulting in customer satisfaction at The Coffee Bean & Tea Leaf in the Vietnamese market, concluding Reliability, Tangibles, Assurance, Responsiveness and Empathy ( Service Quality ) , Beverage Quality and Price and Value. In addition, the customer satisfaction also has a positive correlation influencing their return intention and word-of-mouth endorsement. Practical implications – Managers of The Coffee Bean & Tea Leaf in Vietnam can understand customer‘s expectation to meet and satisfy them in good ways which determine their return intentions and positive word-of-mouth towards this brand. Thanks to it, Coffee Bean can increase the revenue and develop their reputation in the Vietnamese market. Originality/value – The influence of customer satisfaction towards return intention and word-of-mouth should be considered importantly. From this, managers of Coffee Bean try to satisfy customers and meet their expectation. Keywords – customer satisfaction, return intention, word-of-mouth, The Coffee Bean & Tea Leaf, DINESERV model, service quality Paper type - Research paper Customer Satisfaction, Return Intention, Word-of-mouth 1 CHAPTER ONE: INTRODUCTION This is the first part of the research. Background of the studied field and general information of the company are presented. Some components such as research question and objectives, significance of the research, scope and limitation, methodology and structure are then continued. 1. Background: Coffee is a product that was first introduced in Vietnam from the 19th century and since then coffee has become habitual and familiar with the Vietnamese. The bitter and strong taste inside the tongue, the flavor of almond and the pervasive smell of land besides a cup of coffee make people ecstatic. Just like that coffee has gone into the heart of the Vietnamese gently and fervidly. The coffee culture in Vietnam is different from this in many Western countries. Like the French, the Vietnamese enjoy a cup of coffee leisurely and lightly. If coffee is considered as an instant drink made by a machine - a method bringing enthusiasm to work by American, it is a cultural style in Vietnam: sip and thought. They make a cup of coffee by a filter, wait for falling drop by drop and just drink small sips whereas smoking, reading newspapers, listening to the music, chatting friends , talking to working partners and sometimes think about life and people… The French drink coffee before going to work every morning while the Vietnamese take at least thirty minutes for every time of drinking and can drink anytime in day. Indeed, coffee takes an important role in the life and culture of the Vietnamese. After joining into WTO in 2007, Vietnam has welcomed a variety of international brands coming to develop. Food and beverage industry is no exception. Big brands have brought colorful outlook for the retail dimension in Vietnam with initial expansion of large shopping malls and cinemas. Since then, Vietnamese culture has been influenced by these Customer Satisfaction, Return Intention & Word-of-mouth international trends and more and more new standards and lifestyles have developed. Instead of gathering and dining at home after work, current young people prefer to be out of home and experience new and strange things. This leads to a considerable growth in demand for innovative and complicated products, particularly in food and beverages. With the generosity to spend on food & beverage, shopping and entertainment, the young are contributing to rise to a contemporary café culture. It is not only a cup of coffee in traditional environment as of the old, but it needs more and more. In recent year, Vietnam is seen as a potential market with the population of more than 90 million people, long coffee cultural tradition and more than half of population is the young with stably increased salary, a lot of global coffee brands rush to Vietnam to make business. After the success of coffee chain Highlands with European style, many brands such as Angel-In-Us (Korea), Gloria Jean‘s Coffee (Australia), The Coffee Bean & Tea Leaf (America) and now Starbuck (America)… gradually expand their shops in two big cities of Vietnam. In order to develop successfully in this market, such brands have applied the concept ―Glocalization‖ to their products to be appropriate Vietnamese culture as well as suitable methods to attract young people. The young people want to show their rank when enjoying a cup of coffee with a piece of cake at beautiful views, unique design and in friendly, comfortable and warm environment. Each The Coffee Bean & Tea Leaf is a consequence of this application. It is a ―third place‖ (Ray Oldenburg ,1999) where people can spend time with friends, partners, relatives, family or even by themselves enjoying true coffee with a new flavor, in modern environment and gaining pleasant memories. 2. General information of The Coffee Bean & Tea Leaf: The Coffee Bean & Tea Leaf is American brand established by Mr. Herber B. Hyman in 1963 at California. Since then, the brand is proud of providing more than 22 kinds of excellent coffee and 20 kinds of high-class tea all over the world. The Coffee Bean 2 Customer Satisfaction, Return Intention & Word-of-mouth 3 & Tea Leaf had officially joined into Vietnamese market from 2008 with the entry mode as franchising by Viet Café Trading Co. Up to now, there are fourteen branches in Ho Chi Minh City and two branches in Hanoi. With ―self-served ―style, this brand had brought a new wave with unique taste of American coffee that is made by machine and a variety of other drinks. Beautiful locations, special design, interactive ambience, friendly and efficient waiters are the same formulae that decide the style of The Coffee Bean and Tea Leaf. 3. Rationale for study: In current competitive market of Vietnamese coffee industry, customers can have choices among various service providers. They can select on the basis of trust, products, service or efficiency (Sachdev et al, 2004). More and more money to be paid, more and more quality customers need to consider. Keiser (1988) said that long-term financial capability and sustainable business success depend on the ability of providing high quality. In the restaurant industry generally and coffee shops particularly, customers usually see service quality, food quality, physical environment and price and value as key factors of restaurant experience in evaluating restaurant quality. It was discovered by Dabholkar, Shepherd and Thorpe (2000) that perceived service quality has been recognized as the most important determinant among potential candidates affecting customer satisfaction. According to Spreng and Mackoy (1996), service quality also results in customer satisfaction. Service quality and customer satisfaction have long been accepted as taking an important role on business success and survival in the currently increasing competitive conditions. Moreover, customer satisfaction is usually considered as a predictor of customer‗s behavior intentions such as purchase and loyalty intentions, willingness to deliver positive word of mouth, referral and complaint intentions by many authors (Olsen, 2002; Kang, Nobuyuki and Herbert, 2004; Söderlund and Öhman, 2005). It is not sure that a satisfied customer can revisit a restaurant but it is guaranteed that a dissatisfied customer will never Customer Satisfaction, Return Intention & Word-of-mouth 4 return. In this industry, positive word-of-mouth also plays a more convincing role as an annoyed customer will destroy and dissuade other potential customers against a particular provider. Therefore, it is quite essential for coffee shops to provide customers with the highest satisfaction so it can lead to a growth of repeat customers, brand loyalty and attracting new customers by developing firm‘s reputation. More particularly, the cost of retaining existing customers by improving products and services of the brand is totally lower than the cost of winning new customers (Krishnan et al, 1999). Currently, The Coffee Bean & Tea Leaf is the only international brand that possesses the most branches in comparison with contemporary ones such as Angel-in-us or Gloria Jean‘s Coffee (coming to Vietnam from 2008). However, with the entrance of Starbuck and Dukin Donut last year and McCafe this year, the coffee market in Vietnam is more and more ebullient and severe. In order to survive in this environment as well as expand the market share in the industry, it is essential for The Coffee Bean & Tea Leaf to develop appropriate strategies effectively. Meeting customer‘s expectations effectively as well as increasing customer satisfaction are key elements in the business success. From the above reasons, the research is focused on assessing customer satisfaction, return intentions and word-of-mouth endorsement at The Coffee Bean and Tea Leaf so that this brand can provide suitable and strategic improvements. 4. Research Problem / Questions: The research problem in this study is to find out how The Coffee Bean and Tea Leaf can satisfy customers and how this satisfaction influences on return intentions and word-ofmouth endorsement. Based on research problem, some questions are developed as the followings: 1. Which are determinants influencing customer satisfaction at The Coffee Bean and Tea Leaf? 2. How much is each determinant contributing in this satisfaction? 5 Customer Satisfaction, Return Intention & Word-of-mouth 3. How much does customer satisfaction contribute in the development of customer‘s return intentions and word-of-mouth endorsement? 5. Research Objectives : The study has three main objectives. Firstly, the author wants to test the influence of perceived service quality on customer satisfaction in the context of coffee shop. Second aim is to define key dimensions and items that customers perceives as ―meeting their expectation‖ Finally, the research reveals the impact of customer satisfaction on return intention as well as word-of-mouth endorsement so that some helpful methods will be carried out for improvement. 6. Significance of the research: It is necessary for the managers of The Coffee Bean & Tea Leaf to understand clearly about customer‘s expectations and perceptions towards this brand. Thanks to it, they will have detailed and suitable strategies to invest their resources effectively as well as make changes to decisive quality dimensions that influences strongly to customer satisfaction. This plays an important role in increasing sale revenue of the company and expanding market share in the industry due to maintaining of old customers (repurchasing) and wining new ones (word-of-mouth endorsement). Moreover, other coffee shops can see and learn from the case of The Coffee Bean & Tea Leaf and apply these valuable lessons for their shops. (Both international brands and Vietnamese brands). 7. Scope and limitation: The research is focused on customers of The Coffee Bean & Tea Leaf including the Vietnamese and Foreigners with the age from 18 to 45 in Ho Chi Minh City. These customers have had experience with products and service of this shop and return one more to enjoy it. This paper is limited to evaluate satisfaction and behavior intentions of customers in Hanoi as well as other customer groups that are not belonging to the interviewed age. Customer Satisfaction, Return Intention & Word-of-mouth 8. Research Methodology: This paper is collected from both primary and secondary data. With the second kind, surveys are carried out at fourteen branches of The Coffee Bean & Tea Leaf in Ho Chi Minh City. It is distributed to a sample of 420 customers who has enjoyed any product of The Coffee Bean & Tea Leaf. After collecting data, some methods such as Cronbach‘s Alpha, Exploratory Factor Analysis and Regression Analysis are used to analyze and find out appropriate strategies for improvements. 9. Structure of the Thesis: There are five parts in the research. Part one provides introduction of field studied and the topic chosen, research question and objectives, significant of the study, scope and limitation also are presented. Part two includes review of literature review of many authors and identifies the conceptual framework of the thesis. Methods and techniques used to choose sample, collect data, design a questionnaire, measuring scale are showed in Part three – Methodology. Part four explains result of analysis and the final part gives recommendation and conclusion of the paper. CHAPTER ONE: INTRODUCTION CHAPTER TWO: LITERATURE REVIEW CHAPTER THREE: METHODOLOGY CHAPTER FOUR: ANALYSIS & RESULTS 6 Customer Satisfaction, Return Intention & Word-of-mouth CHAPTER FIVE: CONCLUSIONS & RECOMMENDATIONS Figure 1: Structure of the thesis 7 Customer Satisfaction, Return Intention & Word-of-mouth CHAPTER TWO: LITERATURE REVIEW This chapter provides a review of literature that introduces theories and dimensions relating to the field of this paper such as service quality, customer satisfaction, Measurement of Service Quality in the restaurant industry, Food Quality, Price and Value, Return Intention and Word-of-mouth. From these, the conceptual framework and hypothesis will be built. 1. Customer Satisfaction: There are many reasons explaining the attention of measuring customer satisfaction as the ability of establishing customer loyalty, growing positive word of mouth, leading to repeat purchases and broadening the market share and profitability of the firms (Cronin and Taylor, 1992; Halstead and Page, 1992; Fornell, 1992; and Oh and Parks, 1997).Therefore, the nature of customer satisfaction has been conceptualized by several authors. Yuksel and Yuksel (2002) stated that both researchers and managers pay a lot of attention to the topic of customer satisfaction. According to Olive (1997), the feelings of satisfaction occur when customers compare their actual performance with expectation of any product or service. Similarly, Kotler (2000) defined satisfaction as the feeling of a person of pleasure or disappointment when comparing perceived performance in relationship with his or her expectation. Satisfaction can be associated with feelings of acceptance, happiness, relief, excitement, and delight (Hoyer and MacInnis, 2001).Or Khalifa and Liu (2003) presented that customer‘s positive assessment after post-purchasing results in customer satisfaction. Based on this review, customer satisfaction is described as the result of cognitive or affective assessment process (Giese & Cote, 2000) where some standards will be used to compare with actual performance. If customers perceive lower than their expectations, they will be dissatisfied. On the other hand, if customer‘s perceptions meet expectations, they will be satisfied. Otherwise, if customers perceive more than their expectations, they will be delighted. 8 Customer Satisfaction, Return Intention & Word-of-mouth 2. Service Quality: Since there are too restaurant choices available, customers do not hesitate to leave bad restaurants and select better ones if they cannot provide good service quality. That is why the significance of service quality is more and more increased in recent years. The concept also has been debated from both academicians and practitioners (Negi, 2009) and in the services marketing filed .Traditionally, Lewis and Booms (1983) defined that service quality assesses how well service level that the provider can meet customer‘s expectations on an appropriate basis. It can be understood as the comparison between what customers want to be offered and actual service they receive (Parasuraman, Zeithaml and Berry, 1985, 1988). Or Eshghi, Roy and Ganguli (2008) said that service quality is a general evaluation of customers toward a service. Sharing the same opinion, Parasuraman et al. (1985, 1988), Johnston (1995), Zeithaml and Bitner (1996), Ueltschy, Laroche, Tamilia and Yannopoulos (2004) and Fogli (2006) descried service quality is the whole impression of customers relating to inferiority / superiority of services delivered from the supplier. Compared with product quality, there are a lot of difficulties to measure service quality physically because of four special characteristics of service such as intangibility, inseparability, heterogeneity and perishability (Bitner, Fisk and Brown, 1993). So, service quality is considered as a significant advantage to differentiate itself from its competitors (Ladhari, 2008). Similarly, it was also agreed by Yeo (2008) that a lot of firms are fostered to supply higher and higher service quality to customers in this severely competitive industry. 3. The relationship between customer satisfaction and service quality: During the past few years, there has been an increased insistence on service quality and customer satisfaction in business and academia. There is a strong correlation existing between service quality and customer satisfaction although these two concepts are totally different (Sureshchandarl, Rajendran and Anantharaman, 2003). Several authors have 9 10 Customer Satisfaction, Return Intention & Word-of-mouth demonstrated that service quality takes an optimal role in leading customer satisfaction with a service encounter (Stevens, Knutson, & Patton, 1995; Qu, 1997; Pettijohn, Pettijohn, & Luke, 1997). It is not an exception in the restaurant settings. In other words, Parasuraman et al. (1985) pointed out that the level of perceived service quality is in direct proportion to customer satisfaction. The higher service quality is, the higher customer satisfaction is. This is in line with Saravana and Rao (2007) and Lee, Lee and Yoo (2000) who believed that customer satisfaction is based upon the level of service quality delivered from the provider. It was agreed that the connection between service quality and satisfaction is totally undoubtful (Bitner, 1990; Bolton and Drew, 1991; Parasuraman et al., 1988). There are many studied topics of customer satisfaction based on service quality, especially in the restaurant industry such as research of Inkumsah (2011), Khan and Shaikh (2011), Andaleeb and Conway (2006), Yüksel and Yüksel, F. (2003). All of them show that service quality is an important factor contributing to customer satisfaction. 4. Measurement of Service Quality in the restaurant industry: The evaluating of service quality in the restaurant field is quite difficult because it is not only assessing from service outcome but also from service delivery process. Therefore, it is essential to develop a suitable measurement to recognize all characteristics of the service quality in the field. As discussed earlier in the literature review, there are a lot of definitions of service quality, so there are also many measurements of service quality. One of the best-known measures of service quality available is SERVQUAL instrument that compares the differences between customer‘s expectations and their actual performance (Parasuraman , Zeithaml and Berry, 1985,1988) The first version SERVQUAL model was introduced from 1985 by Parasuraman and his colleagues through a series of publication where they conceptualized service quality Customer Satisfaction, Return Intention & Word-of-mouth model throughout five gaps that can influence customer‘s assessment of service quality in four different industries (retail banking, credit card, securities brokerage and product repair and maintenance). Perceived service does not meet consumer‘s expectation with a negative gap. In contrast, service can exceed expectation of customers with a positive gap. Parasuraman et al. (1988) then developed SERVQUAL model that is two-part survey including a set of 97 statements showing various sides through ten dimensions to assess expectation and perception of customers of service quality in service and retail business. They reduced from 97-item instrument to 34-item grouped in seven dimensions. After many researches carried out, the authors had refined and finalized SERVQUAL model as 22-item instruments through five components. They include Tangibles, Reliability, Responsiveness, Assurance and Empathy. The final instrument was divided into 2 parts. One part including 22 items measures customer‘s expectation whereas the other measures their perceptions. The expectation scale gauges the extent that customers think a certain company in an industry should have service quality attributes. The perception scale gauges the extent that customers feel actual performance towards service quality attributes of some company (Zeithaml and Parasuraman, 2004). During the last few years, several authors have used SERVQUAL instrument to gauge service quality in their researches (Ladhari, 2008). It has also been applied in the restaurant industry by Bojanic and Rosen (1994), Lee and Hing (1995), Kivela, Inbakaran and Reece (1999), Yüksel and Yüksel (2003), Andaleeb and Conway (2006), Markovic, Raspor, Segaric (2009), Ryu and Han (2010), Markovic, Raspor and Dorcic (2011) .Despite of wide usage, this instrument has been still received criticism from academics (Carman 1990; Babakus and Boller 1992; Teas 1994). Therefore, many modified SERVQUAL is developed and applied for different industries suitably. Accordingly, DINESERV instrument was created by Stevens, Knutson and Patton (1995) to evaluate how customers see a restaurant‘s quality. Stevens et al (1995) still retained five dimensions of SERVQUAL 11 Customer Satisfaction, Return Intention & Word-of-mouth 12 and developed 22-items in the context of restaurant as well as added seven extra restaurant specific items. DINESERV instrument included 29 variables and is gauged on a seven-point scale. Reliability was seen as the most significant dimension, followed by tangibles, Assurance, Responsiveness and Empathy. They are defined as below: Figure : The Five Dimensions of DINESERV (Stevens et al., 1995) a. Reliability: Ability to implement promised services dependently and accurately b. Tangibles: Physical facilities, equipment, appearance of personnel c. Assurance: Knowledge and courtesy of employee and their ability to convey trust and confidence d. Responsiveness: Willingness to help customers and supply prompt service e. Empathy: Caring and individualized attention The allocation of 29 items in five dimensions of DINESERV is showed in Figure such as: five attributes representing Reliability; ten representing Tangibles; six representing Assurance; three representing Responsiveness and five representing Empathy. ―By administering the DINESERV questionnaire to guests, a restaurant operator can get a reading on how customers view the restaurant‘s quality, identify where problems are, and get an inkling of how to resolve them‖ (Kim, Ng and Kim, 2009). 5. The relationship between Food Quality ( Beverage Quality) and Customer Satisfaction: Furthermore, several researchers have revealed the relationship between food quality and customer‘s satisfaction. Sharing the same opinion, Kivela, Inbakaran and Reece (1999), Raajpoot (2002), Sulek and Hensley (2004) said that quality of food is the most significant factor of the whole restaurant experience. It is also a complete requirement to meet customer‘s needs and expectation in the restaurant (Peri, 2006). Several authors have agreed with the opinion that customer satisfaction with food quality is the most important determinant predicting customer‘s return intention to a given Customer Satisfaction, Return Intention & Word-of-mouth restaurant (Oh, 2000; Qu, 1997; Pettijohn, Pettijohn and Luke, 1997). According to Pettijohn et al. (1997), the majority of customer satisfaction is determined by food quality. It was found by Soriano‘s (2002) that quality of food and fresh ingredients is one of essential reasons that foster customers to revisit a restaurant. Among relative elements making up food quality such as presentation, health options, taste, freshness, variety and temperature, Namkung and Jang (2007) mentioned that food presentation influences the appetite of customers and their actual experience of food quality. Beside food presentation, taste also plays a key role in customer satisfaction and their future actions in revisiting restaurants (Kivela et al., 1999). Based on a review of the marketing literature of Bitner and Hubbert (1994), Churchill and Surprenant (1982), it was stated that there is a close relationship between customer satisfaction and customer perceptions on food quality. Therefore, food quality is seen as one of key attributes that can be influential in restaurant customer satisfaction and predict behavior intentions (Weiss, Feinstein and Dalbor, 2004). 6. The relationship between Price _Value and Customer Satisfaction: In addition, price and value also take an important role in determining customer satisfaction and their repurchase intentions. Yuksel and Yuksel (2002) explained that not only because of food, service quality and comfortable atmosphere that affect customer‗s decision for their revisit, but also because the price that customers pay represents value for money. Value is totally different among different customers. It can be described as low price or anything customers want for a product/service or the quality customers receive for the price. According to Soriano‘s (2003), the demanded level of quality in restaurant is determined by the price to be paid. Customers find a better value for their money together with increasing expectations of getting a better quality and service. Customers are likely to expect high quality if they pay high price. On the contrary, if the price is low, it can make 13 Customer Satisfaction, Return Intention & Word-of-mouth customers doubtful of the ability that restaurant provides. Johns and Howard (1998) described that price and value are considered by customers as part of the service bundle. Moreover, customers tend to consider internal reference price in this current competitive market. It was defined as price / price scale in consumer‘s memory that is used as a standard for judging or comparing actual prices (Grewal, Monroe and Krishnan, 1998). This shows that the owners need to balance the price offering for the restaurant and the price market hopes to pay to avoid negative deviation (Andaleeb and Conway, 2006). 7. Return Intention and Word-of-mouth: As discussed above, it takes more cost to maintain existing customers than attracting new customers, so the return intention of a customer is quite significant for the company. Boulding, Kalra, Staeling and Zeithaml (1993), Soderlund and Ohman (2003) discovered that intentions are subjective judgements about how a person treat in the future and often used as dependent variables in many service research and satisfaction models. Repurchase intentions are the willingness of customers to buy the same products/ services again and again or to buy different products/ services of the same company because they believe that company offers (Lee, Lee and Feick, 2001). In the context of restaurant, return intentions is replaced to describe the willingness of customers to visit restaurants one more time to use products and services they provide. According to Ng (2005), Word-of-mouth endorsement includes people sharing their evaluation of their experiences. It is defined by Gremler, Gwinner and Brown (2001) that this represents the image of the company and its services that is shared by customers. Wordof-mouth can be positive or negative. Positive word-of-mouth can generated from satisfying service encounter whereas negative one can generated from dissatisfying encounters (Susskind, 2002). It may affect customer‘s decision relating to using a product/service of the company (Gremler et al., 2001). 14 Customer Satisfaction, Return Intention & Word-of-mouth 15 It is reported from Struebing (1996) that attracting new customers through word-ofmouth, growing the percentage of retained customers and growing expenditure or usage by existing customers are contributing to revenue streams. It is also believed that an overall growth in revenue results only by increasing advertising and promotional effort (Danaher and Rust, 1996). According to these authors, positive word-of-mouth suggestions from family, friends and colleagues always take an important role in the sale. 8. The relationship between customer satisfaction and behavior intentions (return intention and word-of-mouth): It is stated by Mittal and Kamakura (2001) that customer‘s desires for future purchase are determined by customer satisfaction. Wirtz (2003) concluded that customer satisfaction results in repurchasing, positive word of mouth, loyalty, and bringing long term profitability for firms. Also, Matzler, Bailom, Hinterhuber, Renzl, and Pichler (2004) devoted to identify that reducing price sensitivity, increasing cross-buying, positive word of mouth and customer loyalty are some beneficial consequences of customer satisfaction. A high level of customer satisfaction will lead to an increase in repeat customers. It is critical for providers to evaluate customers‘ satisfaction levels and to apply that knowledge for understanding and maintaining long-term customer‘s retention and competitiveness. When customers are satisfied and pleasant, they tend to be loyal. When they are loyal, they not only buy more but also tell other customers about good things. The research of Bain & Company in Harvard Business Review (2001) showed that the customer retention‗s increase by 5% can lead to the growth of profits by 25% to 95%. Conklin (2006) also discovered that gaining a new customer will cost six to seven times more than keeping an existing one. It is stated that this repurchase/return intentions is influenced greatly by customer satisfaction (Maxham, 2001). Many authors such as Hume (2008), Mittal and Kamakura (2004) pointed out that elements of service quality and customer satisfaction affect positively to return intentions. Or Stevens et al., (1995) also described that the high Customer Satisfaction, Return Intention & Word-of-mouth customer satisfaction with service quality that is in the top position will create intentions to revisit the dining unit. After a research of customer satisfaction with restaurant attributes and return intention in the United States, Weiss (2003) finalized there are a great impact between these two concepts. The level of customer satisfaction can gauge how often customers return to the restaurant. Indeed, Ranaweera and Prabhu (2003) concluded that customer satisfaction and trust has a great and dramatic impact on customer repurchase intention and positive word-ofmouth. 9. Conceptual Framework: Based on the DINESERVE model of Stevens et al., 1995 and many papers of previous authors showing service quality, food quality, price and value are key determinants of customer satisfaction mentioned in the given literature, this study is going to use five dimensions measuring service quality by DINESERV model and two additional dimensions to examine their impacts on customer satisfaction. Moreover, in the recent research studied by Ng (2001), this also revealed that customer satisfaction has positive influence on return intention and word-of-mouth. Taking these findings in consideration, next part of this framework explains the future behavior intentions of customer satisfaction. 16 Customer Satisfaction, Return Intention & Word-of-mouth Reliability H1.1 Return Intention Tangibles Service Quality H1.2 2222 H1.3 Assurance H4 Customer Satisfaction Responsiveness H5 Empathy Word-of-mouth H2 Beverage Quality H1.4 H3 Price and Value H1.5 5 Figure 2: The Conceptual Framework 10. Research Hypothesis: From the mentioned conceptual framework, the main hypotheses are stated: H1: Overall Service Quality has an important positive influence on Customer Satisfaction. 1.1: ―Reliability‖ has an important positive influence on Customer Satisfaction. 1.2: ―Tangibles‖ has an important positive influence on Customer Satisfaction. 1.3: ―Assurance‖ has an important positive influence on Customer Satisfaction. 1.4:―Responsiveness‖ has an important positive influence on Customer Satisfaction. 1.5: ―Empathy‖ has an important positive influence on Customer Satisfaction. H2: Beverage Quality has an important positive influence on Customer Satisfaction. H3: Price and Value has an important positive influence on Customer Satisfaction. H4: Customer Satisfaction is positively related to Customer Return Intention. H5: Customer Satisfaction is positively related to Word-of-Mouth Endorsement. H6: Overall Satisfaction is different between female and male. H7: Overall Satisfaction is different among Age Groups. 17 Customer Satisfaction, Return Intention & Word-of-mouth CHAPTER THREE: METHODOLOGY This chapter provides a comprehensive analysis based on process, methods and techniques used in the research to collect data, how to select sample, how to prepare and design questionnaire, measuring scale and methods applied to treat raw data. 1. Research Process: Literature Lit Review Conceptual framework EFA Cronbach‘s Alpha Linear Regression Analysis One-Way ANOVA test Questionnair e Design Collecting Data Pilot Test Redesign questionnaire Recommendati on & Conclusion Figure 3: Research Process 2. Research Design: Descriptive research is used in the study to collect information describing current status of phenomenon / characteristic of specific groups or relationships existing between two things in a situation. With the kind of research, it helps the author to solve questions beginning with who, what, when, where, why, how. According to Borg and Gall (1989), studies aiming to ―finding out‖, observational and survey methods are usually used to collect data. By asking a variety of specially designed questions to a large number of people, survey can help the researcher to discover unique characteristics followed by a group people (Naoum, 2001). Krysik and Finn (2010) also reported that survey research is a 18 Customer Satisfaction, Return Intention & Word-of-mouth widely used way to collect data in social work research. Survey is a systematic method of gathering data that takes full advantage of questionnaires. Respondents are asked to define what they know, trust, fell or what they have done or predict their future behaviors. Moreover, the research is quantitative and cross-sectional in nature. Quantitative associates numbers and statistics whereas the second measures a sample at a single point in time (data are gathered on variables concurrently). According to Naoum (2007), the nature of quantitative research help results analyzed more objectively. With this kind, primary data is generated by a limited numbers of pre-determined items that are resulted from experiments, structured observations and survey questionnaire (Krysik and Finn, 2010). As mentioned in the literature review, elements of DINESERV model and two additional ones from other studies are brought together to evaluation factors affecting customer satisfaction as well as define relationship between it and future behavior intentions at The Coffee Bean & Tea Leaf. 3. Data Collection Method: It is essential to gain data from two sources of secondary and primary data.  Secondary Data or called as Desk Study approach: are gained from other different sources that are not by first hand (Naoum, 2007). This information can be showed in a statistical or descriptive format. They are from academic literature reviews of several authors, public journals, previous thesis of IU students and articles on the Internet.  Primary Data or called as Fieldwork Research (Naoum, 2007). Among three main approaches of Fieldwork, survey approach is chosen in this paper. A large number of customers at The Coffee Bean & Tea Leaf are asked to complete questionnaire within a limited time frame to obtain data for this survey. 3.1 Sample Selection: The study adopts rule of 150 and STV ratio (Hutcheson and Sofroniou, 1999; Bryant and Yarnold, 1995). Rule of 150 asks at least 150-300 cases whereas STV ratio 19 Customer Satisfaction, Return Intention & Word-of-mouth 20 recommends sample should be at least five time the number of variables and subjects-tovariables ratio should be no lower than 5. So, Sample size = 5 * number of variables = 5 * 44 = 220 From both of rule, the research selects a sample of 420 customers from fourteen shops of The Coffee Bean & Tea Leaf in Ho Chi Minh City. Because of limitations of time, money and workforce, non-probability is the sampling method used for this research. With this kind, the author chooses sample from a group of entire population who possesses same characteristics according purpose of the research. In order towards target customers of Coffee Bean, quota and judgmental sampling is applied to interview 30 people at every branch (the total of 14 branches is 420 people including 378 the Vietnamese and 42 foreigners) between the ages from 18 to 45. These customers have had experienced the service and just enjoyed any product of The Coffee Bean & Tea Leaf and are willing to participate in this survey. 3.2 Questionnaire Design: The questionnaire including 54 questions divided into two parts. It begins with the introduction part where the researcher presents about name, topic and purpose of this questionnaire survey as well as ensures respondents‘ information will treated confidentially and used for academic result. After this part, participants are required to supply demographic information as gender, nationality, age, income, frequency of visiting Coffee Bean and people they often go together as well as location of favorite shop in the chain of Coffee Bean via seven questions of multiple choices. Part two is aimed to determine factors relating to customer satisfaction and correlation between it and return intention as well as word-of-mouth endorsement that is showed in 50 questions with the same measuring scale is guided. Questionnaire is formatted in closeended and short questions with multiple choices that are easier for respondents to answer Customer Satisfaction, Return Intention & Word-of-mouth and convenient for the author to collect and analyze data. The first 30 attributes are applied from DINESERV of Steven et al (1995) study with some adjustments to make it applicable to service quality of a coffee shop. They are Reliability, Tangibles, Assurance, Responsiveness and Empathy. Two items such as paying as planned and overall satisfaction are chosen from Andaleeb and Conway‘s (2006) research. Attribute as reasonable price item is applied from Dining Experience Survey of Kivela, Reece and Inbakaran (1999) whereas one as the overall value of experience at Coffee Bean is adapted from the study of Ng (2001) and they are modified to fit the research‘s purpose. The attribute as appropriate portion size is selected from Yuksel & Yuksel‘s (2002) paper. The author also adapts four attributes of Beverage Quality and three items as satisfaction with service quality, beverage quality and priority over choosing Coffee Bean when drinking from literature reviews of several authors presented in Chapter 2 and group discussion. Then, two questions ask customers‘ return intentions are selected from Kivela, Reece and Inbakaran (1999) while the last three question about word-of-mouth endorsement are adapted from Kim, Han, and Lee (2001). Likert scale is the measuring scale used in the part two of questionnaire among several kinds of approach to scaling responses in survey research. Five -point method in Likert scale are: (1) Strongly Disagree, (2) Disagree, (3) Neutral, (4) Agree and (5) Strongly Agree. Each dimension is allocated in the questionnaire as the following: Dimension Questions including dimension Reliability Questions 1 - 5 Tangibles 6 - 15 Assurance 16 – 21 Responsiveness 22 – 25 Empathy 26 – 30 21 Customer Satisfaction, Return Intention & Word-of-mouth Beverage Quality 31 – 34 Price and Value 35 – 38 Satisfaction 39 – 41 Return Intention 42 - 44 Word-of-mouth endorsement 45 – 47 22 Since questionnaire is delivered in Vietnam and mainly to Vietnamese customers, so it is translated to Vietnamese. After being translated from English to Vietnamese by the researcher, it is considered and consulted by some people that are good at English and business field to minimize translation variances as well as modified to be suitable in the context of Vietnam. 3.3 Pilot Test: It is essential for a questionnaire to be piloted with a suitable sample from a target population. Pilot test will help discover weakness of questionnaire design (Cavana, Delahaye and Sekaran, 2001). Fink (1995) also recommended that the number of a sample for a pilot test should not less than 10 for most customer questionnaires. It is aimed to check the meaning of questions, content in the context of coffee shops in Vietnam and easily – understood measuring scale to have a better questionnaire revision. Moreover, Baker (1994) also explained that 10-20% of the sample size of the actual research should implement te pilot test. In this research, a pilot test are conducted with participation of 42 people who have knowledge of English, business and marketing field and experience service at The Coffee Bean & Tea Leaf. After their feedbacks, the questionnaire will be re- composed and deliver to bigger sample. Moreover, after delivering to 50 people, some misunderstood questions are considered and repaired until I have the best questionnaire. 3.4 Distributing Questionnaire: Final questionnaires (two versions: Vietnamese and English) are distributed to Vietnamese and Foreign customers at The Coffee Bean & Tea Leaf from 19.00 PM to 22.00 Customer Satisfaction, Return Intention & Word-of-mouth PM some days in a week. It takes about four weeks for the survey to be completed. The researcher takes a role as a customer and asks for help from others to participate in the survey that only takes five minutes to finish and do not cause any disorders to normal business of coffee shops. 4. Data Analysis: After collecting data, the process of analyzing data will start. In order to gain objectives of the paper, some methods as Cronbach‘s Alpha, Corrected Item-Total Test, exploratory factor analysis-EFA, multiple regression analysis through SPSS are carried out.  According to Gleim and Gleim (2003), Cronbach‘s Alpha is a coefficient used to check internal consistency of variables in each factor. It is presented as a number from 0 to 1. It seeks to gauge how closely variables are related to each other and thus measures the same concept. If variables in a factor correlate, the value of alpha will increase. However, a high coefficient alpha does not usually mean a high level of internal consistency. A common acceptable rule of thumb (George and Mallery, 2003) for describing internal consistency using Cronbach‘s Alpha as bellows: α ≥ 0.9 is considered as excellent; 0.7 ≤ α < 0.9 is considered as good, 0.6 ≤ α < 0.7 is considered as acceptable; 0.5 ≤ α < 0.6 is considered as poor and α < 0.5 is considered as unacceptable.  Parallely, a corrected item-total correlation test is carried out to verify whether any individual item in the factor is not consistent to the general characteristic of the whole group (Churchill, 1979). Pallan (2007) stated it will increase Cronbach‘s Alpha score for the factor if deleting items below 0.3 that is considered as the minimum value of an item-total correlation. So, this test help the author remove garbage attributes before building a completed and corrected measuring scale.  After Cronbach‘s Alpha, exploratory factor analysis is used to decrease a large number of variables into a smaller set of variables, check the relationship or 23 Customer Satisfaction, Return Intention & Word-of-mouth construct of variables and set up new underlying dimensions that group correlated items (Williams, Brown and Onsman, 2012). Many tests are used to evaluate the appropriateness of the data for factor analysis before the formation of new factors such as Kaiser-Meyer-Olkin (KMO) Measure of Sampling Adequacy and Bartlett's Test of Sphericity. According to Tabachnick and Fidell (2007), Hair, Anderson, Tatham and Black (1995), it is necessary for KMO index to be 0,5 50% that means seven factors to explain about 65.717% of the variance of the data. Therefore, these 52 53 Customer Satisfaction, Return Intention & Word-of-mouth variables are totally acceptable. The data continue to be used for Rotation Method as Varimax with Kaiser Normalization to check whether a variable can relate to more than one factor. The result is presented as below: Rotated Component Matrixa Component 1 2 TA10 .753 TA2 .745 TA6 .732 TA7 .721 TA9 .716 TA8 .712 TA5 .690 TA3 .679 TA4 .660 TA1 .596 3 AS5 .887 AS1 .835 AS4 .820 AS3 .775 AS2 .711 AS6 .624 4 5 6 .347 RE5 .849 RE1 .828 RE4 .797 RE3 .768 RES4 .913 RES2 .814 RES3 .803 RES1 .708 PV4 .806 PV3 .733 PV1 .728 PV2 .715 EM2 .804 EM3 .802 7 54 Customer Satisfaction, Return Intention & Word-of-mouth EM5 .784 EM1 .765 BQ4 .843 BQ2 .811 BQ1 .695 BQ3 .631 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 6 iterations. Table 32: Result of Rotation Method as Varimax with Kaiser Normalization – 36 variables AS6 still occurs in 2 components 2 & 3 with the factor loading as 0.624 and 0.347. So, AS6 is deleted and thirty- five variables are used to be analyzed the same. The result is as the following: KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square .863 8.293.245 Df 595 Sig. .000 Table 33: KMO and Bartlett's Test – 35 variables Total Variance Explained Initial Eigenvalues Extraction Sums of Squared Loadings % of Variance Cumulative % Total Compo nent Total 1 9.009 25.741 25.741 9.009 25.741 25.741 2 3.617 10.333 36.075 3.617 10.333 36.075 3 3.025 8.644 44.718 3.025 8.644 44.718 4 2.323 6.637 51.355 2.323 6.637 51.355 5 2.164 6.183 57.538 2.164 6.183 57.538 6 1.639 4.683 62.221 1.639 4.683 62.221 7 1.338 3.823 66.044 1.338 3.823 66.044 8 .957 2.734 68.778 9 .809 2.310 71.088 % of Variance Cumulative % Customer Satisfaction, Return Intention & Word-of-mouth 10 .715 2.042 73.131 11 .665 1.900 75.031 12 .643 1.838 76.869 13 .623 1.780 78.649 14 .588 1.679 80.328 15 .526 1.502 81.831 16 .510 1.456 83.286 17 .484 1.382 84.668 18 .462 1.320 85.988 19 .452 1.290 87.279 20 .423 1.208 88.487 21 .406 1.160 89.647 22 .369 1.055 90.702 23 .354 1.012 91.713 24 .340 .971 92.685 25 .322 .921 93.605 26 .307 .877 94.482 27 .282 .805 95.287 28 .278 .795 96.082 29 .251 .717 96.799 30 .241 .688 97.487 31 .234 .670 98.157 32 .194 .553 98.710 33 .176 .502 99.212 34 .142 .405 99.616 35 .134 .384 100.000 Extraction Method: Principal Component Analysis. Table 34: Result of Principal Component Analysis – Independent Factors – 35 variables Rotated Component Matrixa Component 1 2 TA10 .754 TA2 .746 3 4 5 6 7 55 Customer Satisfaction, Return Intention & Word-of-mouth TA6 .733 TA7 .722 TA9 .716 TA8 .713 TA5 .690 TA3 .680 TA4 .661 TA1 .597 AS5 .877 AS1 .838 AS4 .822 AS3 .776 AS2 .722 RE5 .850 RE1 .827 RE4 .800 RE3 .771 RES4 .913 RES2 .815 RES3 .804 RES1 .708 EM2 .804 EM3 .802 EM5 .784 EM1 .764 PV4 .809 PV1 .739 PV3 .737 PV2 .709 56 BQ4 .845 BQ2 .813 BQ1 .696 BQ3 .633 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 6 iterations. Customer Satisfaction, Return Intention & Word-of-mouth Table 35: Result of Rotation Method as Varimax with Kaiser Normalization – 35 variables Finally, after deleting EM4 and AS6, thirty-five variables are arranged in 7 dimensions with the factor loading > 0.5 and explains 66.044% of the variance of the data. Therefore, these variables are totally acceptable. In conclusion, initial thirty-eight variables are reduced into thirty-seven ones (Deleting RE2) after using Cronbach‘s Alpha and being kept for analyzing Factor Analysis. With 3 results from KMO and Bartlett‘s Test, Principal Component Analysis and Varimax with Kaiser Normalization, it is showed that all of these variables are still kept and grouped in the initial seven dimensions.  TANGIBLES: TA10, TA2, TA6, TA7, TA9, TA8, TA5, TA3, TA4, TA1  ASSURANCE : AS5, AS1, AS4, AS3, AS2  RELIABILITY: RE5, RE1, RE4, RE3  RESPONSIVENESS; RES4, RES2, RES3, RES1  EMPATHY: EM2, EM3, EM5, EM1  PRIVE_VALUE: PV4, PV1, PV3, PV2  BEVERAGE_QUALITY: BQ4, BQ2, BQ1, BQ3 The relation among variables is totally strong and all of items used to measure satisfaction of customers at The Coffee Bean & Tea Leaf in Vietnam are totally suitable. 5.2 Dependent Variable: ―Satisfaction‖ Dimension is then used to analyzed, the result is as the following: 57 Customer Satisfaction, Return Intention & Word-of-mouth Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Approx. Chi-Square Sphericity Df 58 .704 421.729 3 Sig. .000 Table 36: KMO and Bartlett’s Test As presented in Table 35, KMO index is 0.704 >0.5 that means the data used to be analyzed are totally suitable. It has Approx. Chi-Square of Bartlett‘s Test of Sphericity of 421.719 with the significant level 0.000 indicating the relationship among three variables are strong enough for proceeding factor analysis. Total Variance Explained Compo Initial Eigenvalues Extraction Sums of Squared Loadings % of Variance Cumulative % Total nent Total 1 2.172 72.404 72.404 2 .476 15.858 88.262 3 .352 11.738 100.000 2.172 Component Matrixa Component 1 % of Variance Cumulative % 72.404 72.404 59 Customer Satisfaction, Return Intention & Word-of-mouth SA2 .878 SA1 .847 SA3 .827 Table 37: Result of Principal Component Analysis – Dependent Factor After EFA, it is found that three variables grouped into one factor that explains 72.404 % of variances of the data. The Eigen value is greater than 1 and these variables have item loadings above 0.5. So, it is reasonable to say that these items are appropriate and acceptable for measuring customer satisfaction. 5.3 Confirmation of Conceptual Framework: The analyzed results show that observed items are grouped into seven independent variables and one dependent variable. These independent ones including thirty – five items (after deleting three unrelated items by using Cronbach‘s Alpha) are arranged as the initial. So, it is totally right to present that the result of Exploratory Factor Analysis is reasonable for the conceptual frame in Chapter 2. 6. Pearson product-moment correlation coefficient: 7. F_R Pearson E Correlation F_RE F_T Pearson A Correlation F_AS F_RES F_EM F_BQ F_PV F_SA .309** .254** .354** .216** .297** .515** .557** .000 .000 .000 .000 .000 .000 .000 420 420 420 420 420 420 420 420 .309** 1 .294** .334** .156** .161** .320** .496** .000 .000 .001 .001 .000 .000 1 Sig. (2-tailed) N F_TA Sig. (2-tailed) .000 N 420 420 420 420 420 420 420 420 .254** .294** 1 .277** .051 .260** .250** .487** Sig. (2-tailed) .000 .000 .000 .293 .000 .000 .000 N 420 420 420 420 420 420 420 F_A Pearson S Correlation 420 60 Customer Satisfaction, Return Intention & Word-of-mouth F_R Pearson ES Correlation .354** .334** .277** .250** .146** .418** .527** Sig. (2-tailed) .000 .000 .000 .000 .003 .000 .000 N 420 420 420 420 420 420 420 420 .216** .156** .051 .250** 1 .227** .384** .388** Sig. (2-tailed) .000 .001 .293 .000 .000 .000 .000 N 420 420 420 420 420 420 420 420 .297** .161** .260** .146** .227** 1 .353** .454** Sig. (2-tailed) .000 .001 .000 .003 .000 .000 .000 N 420 420 420 420 420 420 420 420 .515** .320** .250** .418** .384** .353** 1 .710** Sig. (2-tailed) .000 .000 .000 .000 .000 .000 N 420 420 420 420 420 420 420 420 .557** .496** .487** .527** .388** .454** .710** 1 Sig. (2-tailed) .000 .000 .000 .000 .000 .000 .000 N 420 420 420 420 420 420 420 F_E Pearson M Correlation F_B Pearson Q Correlation F_P Pearson V Correlation F_S Pearson A Correlation 1 .000 **. Correlation is significant at the 0.01 level (2-tailed). Table 38: Result of Pearson Correlation Coefficient From the Table 38, it is found that seven independent factors have positive correlation towards the dependent factor with Pearson Correlation from 0.388 to 0.710 in the total of 420 participants. The correlation between Price_Value and Satisfaction is quite strong whereas the one between Empathy and Satisfaction is quite low. Furthermore, the significant value of all independent factors to ―Satisfaction‖ factor is 0.000 indicating the correlations are important. Also, there is correlation among independent factors; however, it is quite low (below 0.6). So, it is not necessary to note about this. 420 Customer Satisfaction, Return Intention & Word-of-mouth 7. Regression Analysis: Linear Regression is a next step after Pearson correlation. It is used to predict the value of dependent variables as SASTISFACTION based on seven independent variables as RELIABILITY, TANGIBLES, ASSURANCE, RESPONSIVENESS, EMPATHY, BEVERAGE_QUALITY, PRICE_VALUE. Because there are many independent variables, Multiple Linear Regression is performed in this paper. It is concluded by Pearson Correlation that seven independent variables have relationship to the dependent variable, so all of them are enter Multiple Linear Regression Model 1 Variables Variables Entered Removed Method F_PV F_AS F_EM, F_TA . Enter F_BQ, F_RES F_REa a. All requested variables entered. b. Dependent Variable: F_SA Table 39: Variables Entered/Removedb From Model Summary Table, it is presented that R Square is 0.724 which is quite large. This means that 72.4 % of variance of customer satisfaction at Coffee Bean is explained by seven predictors such as: Price_Value, Assurance, Empathy, Tangibles, Beverage_Quality, Responsiveness and Reliability. The 28 % rest is explained by other predictors. The suitable level of conceptual framework is quite high. 61 62 Customer Satisfaction, Return Intention & Word-of-mouth Adjusted R Model R R Square .851a 1 Square .724 Std. Error of the Estimate .720 .41213 a. Predictors: (Constant), F_PV, F_AS, F_EM, F_TA, F_BQ, F_RES, F_RE Table 40: Model Summary of Multiple Linear Regression The result of ANOVA table states that F-ratio is 154.751 with the Sign. Value 0.000 < 0.005, indicating the multiple regression model is a good fit of data and can be usable. Model 1 Sum of Squares Df Mean Square F Sig. Regression 183.997 7 26.285 154.751 .000a Residual 69.980 412 .170 Total 253.978 419 a. Predictors: (Constant), F_PV, F_AS, F_EM, F_TA, F_BQ, F_RES, F_RE b. Dependent Variable: F_SA Table 42 : ANOVA Unstandardized Coefficients Model B Std. Error 1 (Constant) -.551 .154 F_RE .105 .025 F_TA .148 F_AS Standardized Coefficients Beta Collinearity Statistics t Sig. Tolerance VIF -3.577 .000 .132 4.214 .000 .680 1.471 .024 .178 6.184 .000 .803 1.245 .244 .032 .221 7.753 .000 .824 1.213 F_RES .174 .033 .156 5.192 .000 .738 1.355 F_EM .115 .031 .104 3.651 .000 .825 1.212 F_BQ .155 .029 .151 5.289 .000 .817 1.224 F_PV .271 .025 .371 10.934 .000 .581 1.721 Table 41: Coefficients Customer Satisfaction, Return Intention & Word-of-mouth It can be seen from Table 42, the values B of all independent variables are positive, arranging from 0.105 to 0.271. So, there is a positive correlation between predictors and the dependent variable. The value B also tells which degree each predictor affects the dependent one when all independent ones are hold constant. The unstandardized coefficients help to build multiple regression equation as the following: Y = -0.551 + 0.105 * F_RE + 0.148 * F_TA + 0.244 * F_AS + 0.174 * F_RES + 0.115 * F_EM + 0.155 * F_BQ + 0.271 * F_PV It means that for every unit increasing in Reliability, there is an increase of a 0.105 unit in customer satisfaction with the condition of holding all other independent variables constant. It is the same with other predictors. With each the value B, there is a standard error presenting to what level the value B can vary depend on different samples. If the author standardizes independent variables and dependent variable before running Regression Analysis, the standardized coefficients Beta will be gained. Moreover, all predictors have Sign. Level of 0.000 < 0.05 indicating that these coefficients are statistically significant different to 0 (zero). Their VIF indexes are from 1.212 to 1,721 and all of them are below 2. It shows that Collinearity among independent variables is quite low which does not affect significantly to the result of Multiple Linear Regression model. All seven basic dimensions such as Service Quality including Reliability, Tangibles, Assurance, Responsiveness and Empathy, Beverage Quality and Price & Value are considered as important independent variables affecting customer satisfaction at The Coffee Bean & Tea Leaf in Vietnamese market. Indeed, there is underlying correlation between satisfaction and these factors. Therefore, the result supports Hypothesis 1, H1.1, H1.2, H1.3, H1.4 and H1.5. H1: Overall Service Quality has an important positive influence on Customer Satisfaction. 1.1: ―Reliability‖ has an important positive influence on Customer Satisfaction. 63 Customer Satisfaction, Return Intention & Word-of-mouth 1.2: ―Tangibles‖ has an important positive influence on Customer Satisfaction. 1.3: ―Assurance‖ has an important positive influence on Customer Satisfaction. 1.4:―Responsiveness‖ has an important positive influence on Customer Satisfaction. 1.5: ―Empathy‖ has an important positive influence on Customer Satisfaction. H2: Beverage Quality has an important positive influence on Customer Satisfaction. H3: Price and Value has an important positive influence on Customer Satisfaction. 8. Reliability Analysis: 8.1 Return Intention Reliability Statistics Cronbach's Alpha N of Items .868 3 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Total Alpha if Item Item Deleted if Item Deleted Correlation Deleted RI1 6.74 2.688 .755 .811 RI2 6.85 2.847 .775 .790 RI3 6.90 3.118 .721 .840 Table 43: Reliability Test applied to Return Intention 64 Customer Satisfaction, Return Intention & Word-of-mouth Cronbach‘s Alpha of Return Intention dimension is 0.868 that is considered as good. Three items RI1, RI2 and RI3 have Item-Total Correlation score from 0.721 to 0.775 that are quite high. Therefore, all of them are still kept for analyzing EFA. 8.2 Word-of-mouth Reliability Statistics Cronbach's Alpha N of Items .873 3 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Total Alpha if Item Item Deleted if Item Deleted Correlation Deleted WM1 6.68 3.029 .741 .834 WM2 6.73 3.017 .774 .804 WM3 6.80 3.072 .752 .824 Table 44: Reliability Test applied to Word-of-mouth As shown from Table 44, ―Word-of-mouth‖ dimension has Cronbach‘s Alpha of 0.873 that is quite high. WM1, WM2 and WM3 have Item-Total score from 0.741 to 0.774 that are good and kept for analyzing EFA. 9. Exploratory Factor Analysis: 9.1 Return Intention Regarding to Return Intention dimension, its KMO index is 0.735 >0.5 that indicates the data used to analyze are totally appropriate. The Approx. Chi-Square is 620.433 and the 65 Customer Satisfaction, Return Intention & Word-of-mouth 66 significant level is 0.000 explaining that there is an existing relationship among three items to proceed to factor analysis. Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Approx. Chi-Square Sphericity df .735 620.433 3 Sig. .000 Table 45: KMO and Bartlett's Test Total Variance Explained Compo Initial Eigenvalues Extraction Sums of Squared Loadings % of Variance Cumulative % Total nent Total 1 2.378 79.275 79.275 2 .351 11.703 90.978 3 .271 9.022 100.000 Extraction Method: Principal Component Analysis. Component Matrixa Component 1 RI2 .904 RI1 .893 RI3 .874 2.378 % of Variance Cumulative % 79.275 79.275 Customer Satisfaction, Return Intention & Word-of-mouth 67 Extraction Method: Principal Component Analysis a. 1 components extracted. Table 46: Result of Principal Component Analysis – Return Intention With Factor Analysis, it is discovered that three variables grouped into one factor that explains 79.275 % of variances of the data. The Eigen value is greater than 1 and these variables have item loadings from 0.874 to 0.904 that are high. Therefore, these variables are totally acceptable for measuring return intention. 9.2 Word-of-mouth Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Approx. Chi-Square Sphericity df .740 633.253 3 Sig. .000 Table 47: KMO and Bartlett's Test The result shows that Word-of-mouth dimension has KMO index of 0.740 >0.5 meaning the data analyzed are suitable. It has Approx. Chi-Square of 633.2533 and the significant level of 0.000 50 % gaining requirement. It can be told that one factor presents 79.750 % the variance of the data. Moreover, the Eigen values are greater than 1 and factor loadings are greater than 0.5, arranging from 0.885 to 0.903. 10. Pearson product-moment correlation coefficient: 10.1 Correlation between customer satisfaction and Return Intention Customer Satisfaction, Return Intention & Word-of-mouth Correlations F_SA F_SA F_WM 1 .803** Pearson Correlation Sig. (2-tailed) F_WM .000 N 420 420 Pearson Correlation .803** 1 Sig. (2-tailed) .000 N 420 420 **. Correlation is significant at the 0.01 level (2-tailed). Table 49: Result of Pearson Correlation Coefficient between Customer Satisfaction and Return Intention From the Table 49, it is found that the independent factor as Customer Satisfaction have positive correlation towards the dependent factor as Return Intention with Pearson Correlation 0.803 in the total of 420 respondents. Furthermore, the significant value is 0.000 indicating this correlation is important. 10.2 Correlation between customer satisfaction and Word-of-mouth Correlations F_SA Pearson Correlation F_SA F_RI 1 .718** Sig. (2-tailed) F_RI .000 N 420 420 Pearson Correlation .718** 1 69 Customer Satisfaction, Return Intention & Word-of-mouth Sig. (2-tailed) .000 N 420 420 Table 50: Result of Pearson Correlation Coefficient between Customer Satisfaction and Word-of-mouth There is an existing relationship between the independent variable as Customer Satisfaction and the dependent one as Word-of-mouth with Pearson Correlation score of 0.718 by the sample of 420 people. Also, the significant value is 0.000 meaning that it is essential to have this correlation between two variables. 11. Simple Linear Regression Analysis: 11.1 Return Intention: Table 51, 52 and 53 shows the result of Regression Analysis between the independent variable as Customer Satisfaction and the dependent variable as Return Intention. It has R Square of 0.515 which indicates that 51.5 % of the variance of Return Intention explained customer satisfaction. Adjusted R Std. Error of the Model R R Square Square Estimate 1 .718a .515 .514 .573376156937134 a. Predictors: (Constant), F_SA Table 51: Model Summary of Simple Linear Regression 70 71 Customer Satisfaction, Return Intention & Word-of-mouth Table 53: Coefficientsa Its F-ratio is 444.239 and the significant level is 0.000 0.05, meaning these two groups do not vary.  24-35 age group versus 35-45 age group: The Sign level is 0.015 < 0.05, demonstrating these two groups vary. It is concluded that three age groups show a significant difference in overall satisfaction. So, the result supports Hypothesis H7. H7: Overall Satisfaction is different among Age Groups. 76 Customer Satisfaction, Return Intention & Word-of-mouth CHAPTER FIVE: CONCLUSIONS & RECOMMENDATIONS The last chapter gives a brief conclusion to the thesis and recommendations to increase customer satisfaction towards Coffee Bean in Vietnamese market. Moreover, limitations and suggestions for future researches will be presented. 1. Conclusions: When the competition among brands is more and more severe, the importance of customer satisfaction attracts more and more attention. Many researches have demonstrated that when customers are satisfied, they often have intentions of revisiting or repurchasing those products and services as well as tell positive things about them. It results in keeping current customers, reaching out to more new ones and growing up the revenue of the company – the significant goal of business. In the economic development of Vietnam, a lot of international brands have penetrated and found the market share. The Coffee Bean & Tea Leaf is an outstanding example. In order to survive and compete with other brands, Coffee Bean is trying to satisfy more and more customers in this market. The research focuses on finding important factors which affect customer satisfaction as well as confirm the relationship between customer satisfaction and behavior intentions such as return intention and word-of-mouth endorsement. The DINESERV model developed from SERVQUAL one and especially used in the restaurant industry was tested in this paper including RELIABILITY, TANGIBLES, ASSURANCE, RESPONSIVENESS and EMPATHY. Two additional dimensions such as BEVERAGE QUALITY, PRICE AND VALUE that are considered from other studies are combines to identify determining factors regarding to customer satisfaction. With 420 participants at fourteen branches of Coffee Bean in Ho Chi Minh City, the data is quite enough to analyze. From initial thirty-eight items grouped in seven dimensions, they are just thirty-five ones after performing Cronbach‘s Alpha and kept for analyzing EFA and 77 Customer Satisfaction, Return Intention & Word-of-mouth Regression Analysis. The result of Regression Analysis shows that all of these seven dimensions have an important influence in customer satisfaction. Particularly, the factor affecting customer satisfaction at The Coffee Bean & Tea Leaf in the Vietnamese market the most is Price and Value with B value of 0.271. It is followed by dimensions as Assurance (B value = 0.244) and Responsiveness (B value = 0.174) of Service Quality, Beverage Quality (B value = 0.155), Tangibles ( B value = 0.148), Empathy ( B value = 0.115) and the last is Reliability with B value of 0.105. It is also concluded that 72.4 % the variance of customer satisfaction is explained by these seven dimensions whereas the rest 27.6 % is determined by other factors. Therefore, it is important for the manager of this brand to consider and find solutions to improve price and value, service quality (Assurance and Responsiveness) and Beverage Quality. Simple Linear Regression Analysis is implemented to explain the relationship between customer satisfaction and return intention as well as customer satisfaction and word-of-mouth endorsement. The result shows that customer satisfaction has a significant influence in these two dependent variables with high R Square value of 51.5 % and 64.5 % responsively. In short, the researcher trusts that the higher customer satisfaction is, the higher return intention of customers and the more positive word-of-mouth endorsement received. The result offers a good implication for the manager of Coffee Bean that it is necessary and important for them to meet or exceed customer‘s expectation to satisfy customers, then grow revisiting rates and go up positive word-of-mouth endorsement. Finally, One-way ANOVA test helps the author to discover statistically significant differences between female and male, age groups and income groups in overall satisfaction. 2. Recommendations: 2.1 Improving Price and Value is the first importance 78 Customer Satisfaction, Return Intention & Word-of-mouth Although the price of The Coffee Bean & Tea Leaf is cheaper than Starbucks and as same as other competitors ( Gloria Jeans, Angel-in-us…), customers still feel the least satisfied with it. So, it is important for managers of Coffee Bean to add more value to their products and services for the same price and have more marketing campaigns which tell more about the value, some methods as the following:  Coffee Bean has three kinds of size: small, regular and large. It is necessary to increase size such as Small to Regular, Regular to Large and Large to Larger with the same price and have more advertisements of this.  Moreover, marketing campaigns need to focus on the value customers will gain when drinking Coffee Bean as creating the difference and bringing the upper level of the global young. Drinking is not only drinking but also is a show. When customers are satisfied with the value they experience at the coffee shop, they will be less sensitive with the price and fell totally deserved to pay for enjoying at Coffee Bean. 2.2 Improving Assurance of Service Quality is the second importance Service quality is considered as one of the most important factors affecting customer satisfaction. In this case, the manager of Coffee Bean needs to improve Assurance the most. Coffee Bean is the model of self-serviced coffee that is quite strange to the Vietnamese culture. That‘s why it is easy to make for the Vietnamese customers think that customer care is not good. So, it is necessary for managers to have more training sessions to staffs which instruct them customer care skills and changing ― self-serviced model‖ to be more suitable in Vietnam:  Staffs should offer more options of menu for customers instead of just asking them which they want to drink. 79 80 Customer Satisfaction, Return Intention & Word-of-mouth  When customers want to know more information about drinks, cakes or anything in the coffee shop, staffs need have enough knowledge and experience to respond completely and quickly.  Therefore, Coffee Bean often organizes training sessions of drink information, serving skills and sale skills for their employees which support to satisfy customers. 2.3 Improving Responsiveness of Service Quality is the third importance In the period, time is valuable for all people, so customers do not want to wait too long to be served. Providing quick and exact service is extremely important which makes customers satisfied or dissatisfied. It is more significant to maintain this speed during busy time. In order to make this, there have to be enough employees working in the duty and they have enough experience and skills to perform the best. In addition, employees are always ready to support customers when being asked for more requirements. 2.4 Improving Beverage Quality is the fourth importance Many international coffee brands in Vietnam are facing a difficult fact that the Vietnamese are familiar with the taste of the Vietnamese coffee. So, enjoying coffee is not a priority for Vietnamese customers at the Coffee Bean. Also, they are not interested in tea – the strong point of Coffee Bean all over the world. Therefore,  It is essential for managers of this brand to look drink options which is a mix of Coffee Bean and local taste. This is an important lesson of successful international brands when wanting to penetrate into a new region. The more suitable the drink is, the more successful this organization is. Using local fruits as banana, cassaba melon, mango, custard-apple and combining methods of Coffee Bean to create special drinks in the Vietnamese market.  Beverage also needs to be decorated attractively: glasses with strange design, their color is fresh and cream is made eye-catching. Customer Satisfaction, Return Intention & Word-of-mouth  Nowadays, when the standard of life is higher and higher, customers pay more attention to which they eat and drink daily. They need to know whether food or beverage is good for their health, skin or spirit. So, more and more nutritional content should be added to drinks of Coffee Bean and advertisements should focus on the information which helps customers have quicker decision when choosing products. 2.5 Improving Tangible is the fifth importance Regarding to Tangibles, customers usually dissatisfied with rest rooms of Coffee Bean. Decoration of coffee shop is very nice, dining area is quite comfortable and spaceful however, rest –rooms are not clean. It is time to invest more for this. It is not to waste when hiring a housekeeper to keep rest rooms clean and tidy. Furthermore, menu sometimes make customers who come to Coffee Bean for the first time confused when there are many words and just English, not Vietnamese. The English – Vietnamese menu should be showed so that they are easy to read. 2.6 Improving Empathy is the sixth importance Regarding to Empathy, there is still customer care. Employees need to pay more attention to customers, understand which they need and want as well as serve them as the God. 2.7 Improving Reliability is the seventh importance Regarding to Reliability, employees still need skills to serve drinks exactly and quickly correct their wrong service. So, the training for employees is very essential so that employees have enough knowledge and skill to have the best performance and satisfy customers. If The Coffee Bean & Tea Leaf want more and more customers come back and introduce to their relatives, it is necessary to make current customer satisfied. When they are happy with products and services, they will have intention of returning and giving positive 81 Customer Satisfaction, Return Intention & Word-of-mouth 82 word-of-mouth endorsement. This not only strengthens customer loyalty but also grow the brand‘s reputation as well as increase sales and revenue in the long term. 3. Limitations and Future Research: This present paper has some limitations and the recognition can help contribute on future research. Firstly, the research just focused on 420 customers (42 foreigners and 378 Vietnamese) at fourteen branches in Ho Chi Minh City. This sample is not representative for all customers of Coffee Bean in the Vietnamese market. Moreover, questionnaires were just distributed to participants coming to the coffee shop in the evening. Some respondents did not take the questionnaire seriously and some ones did not have enough time to think and answer questions completely. If the survey was supported by The Coffee Bean & Tea Leaf that discounted 20% for every questionnaire as well as it is taken at any time in the day, the variety of respondents would be appreciated more. Thirdly, the evaluation of customers towards Coffee Bean is not the same in the different periods. So, the result will be more precise if the survey is distributed in the different periods of the year. In addition, the result showed that 72.8 % the variance of customer satisfaction was explained by seven dimensions such as Reliability, Tangibles, Assurance, Responsiveness, Empathy, Beverage Quality, Price and Value. Therefore, it is also essential for future research to find out other factors explaining 27.6 % of customer satisfaction. Furthermore, other correlations between customer satisfactions and dimensions of behavior intentions beside return intention and word-of-mouth endorsement should be recognized more in future researches. Customer Satisfaction, Return Intention & Word-of-mouth REFERENCES Andaleeb, S. S. & Conway C. (2006). Customer satisfaction in the restaurant industry: an examination of the transaction-specific model. Journal of Services Marketing, 20 (1), 3-11. Babakus, E., and G. W. Boller. 1992. An empirical assessment of the servqual scale. Journal of Business Research 24 (3): 253–268. Bain & Company study in Harvard Business Review, 2001 Baker,T.L.(1994), Doing Social Research (2nd Edn.). New York: Mc Graw-Ill.Inc Bitner M.J., Fisk R.P. and Brown S.W. (1993). Tracking the evolution of the services marketing literature, Journal of Retailing, 69(1), 61 - 103. Bitner, M. J., Booms, B. H., & Tetreault, M. S. (1990). The service encounter: diagnosing favorable and unfavorable incidents. The Journal of Marketing, 71-84. Bitner, M.J. and Hubbert, A.R. (1994), ―Encounter satisfaction versus overall satisfaction versus service quality: the consumer‘s voice‖, in Rust, R.T. and Oliver, R.L. (Eds),Service Quality: New Directions in Theory and Practice, Sage Publications, Thousand Oaks, CA pp. 72-94. Bojanic, D. C., & Rosen, L. D. (1994). Measuring service quality in restaurants: an application of the SERVQUAL instrument. Journal of Hospitality & Tourism Research, 18(1), 3-14. Bolton, R. N., & Drew, J. H. (1991). A multistage model of customers' assessments of service quality and value. Journal of consumer research, 375-384. Adult, Continuing, and community Education. Ohio State: Ohio University. th Borg, W. R., & Gall, M. D. (1989). Educational research: An introduction (5 ed.). New York: Longman 83 Customer Satisfaction, Return Intention & Word-of-mouth Boulding, W., Kalra, A., Staelin, R., & Zeithaml, V. A. (1993). A dynamic process model of service quality: From expectations to behavioral intentions. Journal of Marketing Research (JMR), 30(1). Bryant, F. B., & Yarnold, P. R. (1995). Principal components analysis and exploratory and confirmatory factor analysis. In L. G. Grimm & R R. Yarnold (Eds.), Reading and understanding multivariale statistics(pp. 99-136). Washington, DC: American Psychological Association. Carman, J. M.(1990). Consumer perceptions of service quality: An assessment of the SERVQUAL dimensions. Journal of Retailing 66 (1): 33–55. Cavana, R., Delahaye, B., and Sekaran, U. Applied Business Research: Qualitative and Quantitative Methods, (3rd ed.) John Wiley & Sons Australia, Ltd, 2001. Churchill Jr, G. A. (1979). A paradigm for developing better measures of marketing constructs. Journal of marketing research, 64-73. Churchill, G. A., Jr., & Surprenant, C. (1982). An investigation into the determinants of customer satisfaction. Journal of Marketing Research, 19, 491-504. Conklin, M. (2006). Measuring and tracking customer satisfaction. White paper, retrieved from: http://www. zoomerang. com/whitepapers/customersat. pdf. Cronin Jr, J. J., & Taylor, S. A. (1992). Measuring service quality: a reexamination and extension. The journal of marketing, 55-68. Dabholkar, P. A., Shepherd, C. D., & Thorpe, D. I. (2000). A comprehensive framework for service quality: An investigation of critical conceptual and measurement issues through a longitudinal study. Journal of Retailing, 76(2), 139-173. Danaher, P. J., & Rust, R. T. (1996). Determining the optimal return on investment for an advertising campaign. European Journal of Operational Research, 95(3), 511-521. Fink, A. (1995b). How to ask survey questions. Thousand Oaks, CA: Sage. Fogli, L. (2006). Customer Service Delivery. San Francisco: Jossey-Bass. 84 Customer Satisfaction, Return Intention & Word-of-mouth Fornell, C. (1992). "A National Customer Satisfaction Barometer: The Swedish future patronage. Journal of Restaurant and Foodservice Marketing, 2 (3), 3-20. George, D., & Mallery, P. (2003). SPSS for Windows step by step: A simple guide and reference. 11.0 update (4th ed.). Boston: Allyn & Bacon. Gerbing, D. W., & Anderson, J. C. (1988). An updated paradigm for scale development incorporating unidimensionality and its assessment. Journal of Marketing research, 186-192. Giese, J. L., & Cote, J. A. (2000). Defining consumer satisfaction. Academy of marketing science review, 1(1), 1-22. Gliem, J. A., & Gliem, R. R. (2003). Calculating, interpreting, and reporting Cronbach's alpha reliability coefficient for Likert-type scales. Paper presented at the Midwest Research-to-Practice Conference in Adult, Continuing, and Community Education, Columbus, OH. Gremler, D. D., Gwinner, K. P., & Brown, S. W. (2001). Generating positive word-ofmouth communication through customer-employee relationships. International Journal of Service Industry Management, 12(1), 44-59. Grewal, D., Monroe, K. B. & Krishnan, R. (1998), ―The effects of price-comparison advertising on buyers‘perceptions of acquisitions value, transaction value, and behavioral intentions‖, Journal of Marketing, Vol. 62 No. 2, pp. 46-59. Hair, J. F., Anderson, R. E., Tatham, R. L. T., and Black, W. C. Multivariate data analysis, Prentice-Hall Inc., Upper Saddle river, New Jersey, 1995 Hair, J. F., Anderson, R. E., Tatham, R. L. T., and Black, W. C. Multivariate data analysis, Prentice-Hall Inc., Upper Saddle river, New Jersey, 1998. Hoyer, W. D., & MacInnis, D. J. (2001). Consumer Behaviour. 2nd ed., Boston: Houghton Mifflin Company. 85 Customer Satisfaction, Return Intention & Word-of-mouth 86 Hume, D. A. (2008). Macrophages as APC and the dendritic cell myth. The Journal of Immunology, 181(9), 5829-5835. Hutcheson, G., & Sofroniou, N. (1999). The multivariate social scientist: Introductory statistics using generalized linear models. Thousand Oaks, CA: Sage Publications. Inkumsah, W. A. (2011). Measuring Customer Satisfaction in the Local Ghanaian Restaurant Industry. European Journal of Business and Management,3(2), 125-138. Johns, N. and Howard, A. (1998). Customer expectations versus perception of service performance in the foodservice industry. International Journal of Service Industry Management, 9 (3), 248-265. Johnston, R. (1995): The determinants of service quality: Satisfiers and dissatisfiers, International Journal of Service Industry Management, 6(5), pp, 53-71. Kaiser, H. F. (1960). The application of electronic computers to factor analysis. Educational and psychological measurement. Kang, S. S., Nobuyuki, O. and Herbert, D. (2004). Service Quality and its Effects on Customer Keiser, T. C. (1988). Strategies for enhancing services quality. Journal of Services Marketing, 2(3), 65-70. Khalifa, Mohamed, and Liu, Vanessa (2003). Determinants of Satisfaction at Different Adoption Stages of Internet-Based Services. Journal of the Association for Information Systems, Vol. 4, No. 5, pp. 206-232. KHAN, N. U. R., & Shaikh, U. A. A. (2011). Impact of service quality on customer satisfaction: evidences from the restaurant industry in Pakistan.Management & Marketing-Craiova, (2), 343-355. Kim, W. G. and Kim, Y. (2005) Antecedents and consequences of customer satisfaction in restaurant servicescape. 2005 I-CHRIE Annual Conference Proceedings, pp. 253-257. Customer Satisfaction, Return Intention & Word-of-mouth Kim, W. G., Han, J. S., & Lee, E. (2001). Effects of relationship marketing on repeat purchase and word-of-mouth. Journal of Hospitality and Tourism Research, 25(3), 272-228. Kim, W. G., Ng, C. Y. N., & Kim, Y. S. (2009). Influence of institutional DINESERV on customer satisfaction, return intention, and word-of-mouth. International Journal of Hospitality Management, 28(1), 10-17. Kivela, J., Inbakaran, R., & Reece, J. (1999). Consumer research in the restaurant environment, Part 1: A conceptual model of dining satisfaction and return patronage. International Journal of Contemporary Hospitality Management, 11(5), 205-222. Kotler, P. (2000). Marketing Management. 10th ed., New Jersey: Prentice-Hall. Krysik, J. L. & Finn, J. (2010). Research for Effective Social Work Practice (2nd ed.). New York: Routledge. Ladhari, R. (2008). Alternative measures of service quality: a review. Managing Service Quality, 18 (1), 65-86. Ladhari, R. (2009). Service quality, emotional satisfaction, and behavioural intentions: A study in the hotel industry. Managing Service Quality, 19(3), 308-331. Lee, H., Lee, Y., & Yoo, D. (2000). The determinants of perceived service quality and its relationship with satisfaction. Journal of services marketing,14(3), 217-231. Lee, J., Lee, J., & Feick, L. (2001). The impact of switching costs on the customer satisfaction-loyalty link: mobile phone service in France. Journal of services marketing, 15(1), 35-48. Lee, Y. L & Hing, N. (1995). Measuring quality in restaurant operations: an application of the SERVQUAL instrument. International Journal of Hospitality Management, 14 (34), 293-310. 87 Customer Satisfaction, Return Intention & Word-of-mouth 88 Lewis, R. C., & Booms, B. H. (1983). The marketing aspects of service quality. Emerging perspectives on services marketing, 65(4), 99-107. Markovic, S., Raspor, S, Dorcic, J., What are the key dimensions of restaurant service quality? An empirical study in the city restaurant settings, International Scientific Conference “Tourism in Southern and Eastern Europe (ToSEE) – Sustainable Tourism: Socio-Cultural, Environmental and Economic Impact”, Opatija, Croatia 47.5.2011, 2011, pp. 235-249. Markovic, S., Raspor, S., Segaric, K., Does restaurant performance meet customers‘ expectations? An assessment of restaurant servicequality using a modified DINESERV approach, Tourism and Hospitality Management, Vol. 16, No. 2, 2010, pp.181-195. Matzler, K., Bailom, F., Hinterhuber, H. H., Renzl, B., & Pichler, J. (2004). The asymmetric relationship between attribute-level performance and overall customer satisfaction: a reconsideration of the importance–performance analysis. Industrial Marketing Management, 33(4), 271-277. Maxham III, J. G. (2001). Service recovery's influence on consumer satisfaction, positive word-of-mouth, and purchase intentions. Journal of Business Research,54(1), 11-24. Mittal, V., & Kamakura, W. A. (2001). Satisfaction, repurchase intent, and repurchase behavior: investigating the moderating effect of customer characteristics. Journal of marketing research, 38(1), 131-142. Mittal, V., Kamakura, W. A., & Govind, R. (2004). Geographic patterns in customer service and satisfaction: an empirical investigation. Journal of Marketing, 68(3), 48-62. Namkung, Y. & Jang, S. (2008). Are highly satisfied restaurant customers really different? A quality perception perspective. International Journal of Contemporary Hospitality Management, 20 (2), 142-155. Customer Satisfaction, Return Intention & Word-of-mouth 89 Naoum, S. G. (2007). Dissertation research and Writing for Construction Student (2nd ed.). UK: Elsevier. Naoum, S. G. (2011). Dissertation research and writing for construction students (3rd ed.). London: Routledge. Negi, R. (2009). Determining customer satisfaction through perceived service quality: A study of Ethiopian mobile users, International Journal of Mobile Marketing,4(1). Ng, Y. N. (2005). A study of customer satisfaction, return intention, and word-of-mouth endorsement in university dining facilities (Doctoral dissertation, Oklahoma State University). Oh, H (2000). Diners‘ perception of quality, value, and satisfaction: A practical viewpoint. Cornell Hotel and Restaurant Administration Quarterly, 41 (3), 58-66. Oh, H., & Parks, S. C. (1997). Customer satisfaction and service quality: A critical review of the literature and research implications for the hospitality industry. Hospitality Research Journal, 20(1), 35-64. Oldenburg, Ray. The great good place: Cafes, coffee shops, bookstores, bars, hair salons, and other hangouts at the heart of a community. New York: Marlowe. Oliver, R.L. (1997), Satisfaction: A Behavioral Perspective on the Consumer, McGraw-Hill, New York, NY. Olsen, S. O. (2002). Comparative Evaluation and the Relationship between Quality, Satisfaction, and Repurchase Loyalty. Academy of Marketing Science, 30 (3), 240-249. Pallant, J. (2007). A step-by-step guide to data analysis using SPSS version 15. Open University Press, Maidenhead. Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A conceptual model of service quality and its implications for future research. Journal of marketing,49(4). Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). Servqual. Journal of retailing, 64(1), 12-37. Customer Satisfaction, Return Intention & Word-of-mouth Pearson, K. (1896). Mathematical Contributions to the Theory of Evolution.--On a Form of Spurious Correlation Which May Arise When Indices Are Used in the Measurement of Organs. Proceedings of the royal society of London, 60(359-367), 489-498. Pérez, M. S., Abad, J. C. G., Carrillo, G. M. M., & Fernández, R. S. (2007). Effects of service quality dimensions on behavioural purchase intentions: A study in publicsector transport. Managing Service Quality, 17(2), 134-151. Peri, C. (2006). The universe of food quality. Food Quality and Preference, 17 (1-2), 3-8. Pettijohn, L. S., Pettijohn, C. E., & Luke, R. H. (1997). An evaluation of fast food Process Model of Service Quality: From Expectations to Behavioral Intentions. Journal of Marketing Research, 15(1), 7-27. Qu, H. (1997). Determinant factors and choice intention for Chinese restaurant dining: A multivariate approach. Journal of Restaurant and Foodservice Marketing, 2 (2), 3549. Raajpoot, N. A. (2002). TANGSERV: A multiple item scale for measuring tangible quality in foodservice industry. Journal of Foodservice Business Research, 5(2), 109-127. Ranaweera, C., & Prabhu, J. (2003). On the relative importance of customer satisfaction and trust as determinants of customer retention and positive word of mouth. Journal of Targeting, Measurement and Analysis for Marketing, 12 (1), 82. Ryu, K., Han, H., Influence of the quality of food, service and physical environment on customer satisfaction and behavioral intention in quick-casual restaurants: moderating role of perceived price, Journal of Hospitality & Tourism Research, Vol. 34, No. 3, 2010, pp. 310-329. Sachdev, S. B., & Verma, H. V. (2004). Relative important of service quality dimensions: A multisectoral study. Journal of Services Research, 4(1). 90 Customer Satisfaction, Return Intention & Word-of-mouth Saravanan, R. & Rao, K. S. P. (2007). Measurement of service quality from the customer‘s perspective – An empirical study, Total Quality Management, Vol.18. No. 4, p.435449. Satisfaction and Customer Behavioral Intention: Hotel and Ryokan Guests in Japan. Asia Pacific Journal of Tourism Research, 9 (2), 189-203 Shoemaker, S. (1998). A strategic approach to segmentation in university foodservice. Journal of Restaurant and Foodservice Marketing, 3 (1). Soderlund, M., & Ohman, N. (2003). Behavioral intentions in satisfaction research revisited. Journal Of Consumer Satisfaction Dissatisfaction And Complaining Behavior, 16, 53-66. Soriano, D. R. (2003). The Spanish Restaurant Sector: Evaluating the Perception of Quality. The Service Industries Journal. 23 (2), 183-194. Spreng, R.A. and Mackoy, R.D. (1996), ―An empirical examination of a model of perceived service quality and satisfaction‖, Journal of retailing, Vol. 722, pp. 201-14. Stevens, P., Knutson, B., & Patton, M. (1995) DINESERV: A tool for measuring service quality in restaurants. Cornell Hotel and Restaurant Administration Quarterly, 36 (2), 56-60. Struebing, L. (1996). Word-of-mouth recommendations promote service quality. Quality Progress, 29 (10), 18. Sulek, J. M., & Hensley, R. L. (2004). The Relative Importance of Food, Atmosphere, and Fairness of Wait The Case of a Full-service Restaurant.Cornell Hotel and Restaurant Administration Quarterly, 45(3), 235-247. Sureshchanndra, G. S., Rajendran, C. & Anantharaman, R. N. (2003). ―The relationship between service quality and customer satisfaction - a factor specific Susskind, A. (2002). I told you so: restaurant customers‘ word-of-mouth communication patterns. Cornell Hotel and Restaurant Administration Quarterly, 43 (2), 75-85. 91 Customer Satisfaction, Return Intention & Word-of-mouth Tabachnick, B. G., & Fidell, L. S. (2007). Using Multivariate Statistics: Pearson Education Inc. Boston, MA. Teas, R. K. (1994) Expectations as a comparison standard in measuring service quality: An assessment of a reassessment. Journal of Marketing 58 (1): 132–139. Tekin H (2002). Eğitimde ölçme ve değerlendirme. Yargı Publisher, Ankara. Ueltschy, L. C., Laroche, M., Tamilia, R. D., & Yannopoulos, P. (2004). Cross-cultural invariance of measures of satisfaction and service quality. Journal of Business Research, 57(8), 901-912. Weiss, R. (2003). The relationship between restaurant attributes satisfaction and return intent in U.S. theme restaurants. Unpublished master thesis, University of Nevada, Las Vegas, United States. Weiss, R., Feinstein, A. H., & Dalbor, M. (2004). Customer satisfaction of theme restaurant attributes and their influence on return intent. Journal of Foodservice Business Research, 70 (1), 23-41. Williams, B., Brown, T., & Onsman, A. (2012). Exploratory factor analysis: A five-step guide for novices. Australasian Journal of Paramedicine, 8(3), 1. Wirtz, J. (2003). Halo in customer satisfaction measures: The role of purpose of rating, number of attributes and customer involvement. International Journal of Service Industry Management, 14(1), 96-119. Yeo, R. K. (2008). Brewing service quality in higher education: characteristics of ingredients that make up the recipe. Quality Assurance in Education, 16(3), 266-286. Yuksel, A & Yuksel, F. (2002). Measurement of tourist satisfaction with restaurant services: a segment-based approach. Journal of Vacation Marketing, 9 (1), 52-68. Yüksel, A., & Yüksel, F. (2003). Measurement of tourist satisfaction with restaurant services: A segment-based approach. Journal of vacation marketing,9(1), 52-68. Zeithaml, V, A. &Bitner, M, J. (1996): Service Marketing, US: McGraw-Hill. 92 Customer Satisfaction, Return Intention & Word-of-mouth Zeithaml, V, A. &Bitner, M, J. (2003) Service Marketing: Integrating Customer Focus Across the Firm, New York: McGraw-Hill Higher Education. Zeithaml, V, A. &Bitner, M, J. (2009) Service Marketing: Integrating Customer Focus Across the Firm, New York: McGraw-Hill Higher Education. Zeithaml, V. A., Parasuraman, A., & Malhotra, A. (2002). Service quality delivery through web sites: a critical review of extant knowledge. Journal of the academy of marketing science, 30(4), 362-375. http://www.ats.ucla.edu/stat/sas/notes2/ (accessed November 24, 2007). 93 Customer Satisfaction, Return Intention & Word-of-mouth APPENDIX A – QUESTIONNAIRE (ENGLISH VERSION) My name is Nguyễn Thị Dạ Thảo. I am a student of MBA program at International University. Now, I am carrying out a thesis of evaluating customer satisfaction, customer return intentions and word-of-mouth endorsement at The Coffee Bean and Tea Leaf. I would so grateful if you can spend little time answering the following questions. Your support will help me to have enough data to analyze and evaluate objectively factors affecting customer satisfaction and contribute on improving these weaknesses to serve you better. Your information will be treated confidentially and this is just used for academic purposes. Thank you very much! Section 1: a. Have you ever used products and service of The Coffee Bean & Tea Leaf in Vietnam? If your answer is NO, please stop the survey. b. Which information is the most suitable to you? Put a tick () on your choice of answer Gender Female  Male  Nationality Vietnamese  Foreigners  Age 18-23 years old  24 – 35 years old  35-45 years old  Others  Under 5 million  5-10 million  11-20 million  Over 20 million  Income (VND) 94 Customer Satisfaction, Return Intention & Word-of-mouth How many times do you go Under 5 times  to The Coffee Bean & Tea Over 10 times  5-10 times  Leaf per month? Whom the most often do Friends  Co-workers  Family members  Yourself  you go with?  Cresent Mall  Petro Việt Nam  Nguyen Thai Học  Cach Mang Thang 8 Which coffee shop do you  Kumho  Phan Chu Trinh the most often go in the  Thai Van Lung  Nguyen Tat Thanh chain of The Coffee Bean &  Nguyen Thi Minh Khai  Bitexco Tea Leaf? Nowzone  Saigon Trade Metropolitan  Han Thuyen Section 2: Based on attributes of The Coffee Bean & Tea Leaf, what level does it meet your expectation? Put a tick () on your choice of answer. Measuring Scale: Strongly Disagree 1 Disagree 2 Neutral Agree Strongly Agree 3 4 5 1 2 3 4 5 1. Serve in the promised time      2. Provide an accurate guest check      Reliability 95 Customer Satisfaction, Return Intention & Word-of-mouth 3. Dependent and consistent coffee shop (design, service)      4. Quick correction of wrong service (wrong order, bill…)      5. Serve order exactly      6. Visually attractive parking areas and building exteriors      7. Visually attractive dining area      8. Clean, neat and appropriate dressed staffs      9. Coffee shop‘s décor typical to its image and price range      10. Easily readable menu      11. Visually attractive menu      12. Comfortable and spaceful dining area      13. Clean rest-rooms      14. Clean dining areas      15. Comfortable seats in the dining room      Tangibles Assurance 16. Employees can answer questions completely      17. Making customers feel comfortable and confident      18. Staff provide information about menu items      19. Make customers feel safe      20. Well-trained, competent and experienced staff      21. Coffee shop support employees      Responsiveness 22. Maintain speed and quality of service during busy times      23. Provide prompt and quick service      24. Provide right and exact service      25. Extra effort for handling special requirements      96 Customer Satisfaction, Return Intention & Word-of-mouth Empathy 26. Employees are sensitive to individual attention      27. Make customers feel special      28. Anticipate customer‘s individual needs and wants      29. Sympathetic and reassuring employees      30. Customers‘ best interests at heart      Beverage Quality 31. Overall quality of beverage - good      32. Delicious taste of beverage      33. Eye appeal of beverage      34. Nutritional content of the beverage      Price and Value 35. Reasonable price item      36. Paying as planned      37. Overall value of experience at Coffee Bean      38. Appropriate portion size      Satisfaction 39. Overall satisfaction with experience there      40. Satisfaction with service quality      41. Satisfaction with beverage      Return Intention 42. Returning to the same coffee shop      43. Visiting other shops in the chain      44. Priority over choosing ―Coffee Bean‖ when drinking           Word-of-mouth endorsement 45. Recommending the coffee shop to others 97 Customer Satisfaction, Return Intention & Word-of-mouth 46. Telling friends/family members about drinking           experience there 47. Telling others positive things about this coffee chain THANK YOU FOR YOUR SUPPORT! 98 Customer Satisfaction, Return Intention & Word-of-mouth APPENDIX B – QUESTIONNAIRE (PHIÊN BẢN TIẾNG VIỆT) Tôi tên là Nguyễn Thị Dạ Thảo , là sinh viên năm cuối của chương trình Thạc Sĩ tại trường Đại Học Quốc Tế. Hiện tại,Tôi đang làm khóa luận tốt nghiệp về đề tài ― Đánh giá mức độ hài lòng của khách hàng, khuynh hướng quay trở lại và tác động truyền miệng của khách hàng tại The Coffee Bean & Tea Leaf‖. Tôi rất biết ơn nếu các Anh/ Chị có thể dành chút thời gian để trả lời những câu hỏi sau. Việc tham gia khảo sát của các Anh/ Chị sẽ giúp tôi có đủ dữ liệu phân tích và đánh giá khách quan những nhân tố ảnh hưởng đến mức độ hài lòng của khách hàng và góp phần cải thiện những điểm yếu để phục vụ khách hàng tốt hơn. Thông tin chia sẻ từ các Anh/ Chị sẽ được giữ kín và chỉ dùng cho mục đích học thuật. Rất cám ơn sự giúp đỡ của các Anh/ Chị ! Phần 1: Thông tin nào sau đây thì phù hợp với Anh/ Chị nhất ? Vui lòng đánh dấu () vào câu trả lời Giới Tính Nữ  Nam  Quốc Tịch Người Việt Nam  Người Nước Ngoài  Tuổi 18-23  24 – 35  35-45  Khác  Dưới 5 Triệu  5-10 Triệu  11-20 Triệu  Trên 20 Triệu  Dưới 5 lần  5-10 lần  Thu nhập (VNĐ) Anh/ Chị đến The Coffee 99 Customer Satisfaction, Return Intention & Word-of-mouth Bean & Tea Leaf bao nhiêu Trên 10 lần  lần trong tháng? Anh/Chị thường đi café với Bạn Bè  Đồng nghiệp  ai nhiều nhất ? Gia Đình  Một mình  Anh/Chị thường ghé quán  Cresent Mall  Petro Việt Nam nào nhiều nhất trong chuỗi  Nguyễn Thái Học  Cách Mạng Tháng 8 The Coffee Bean & Tea  Kumho  Phan Chu Trinh Leaf?  Thái Văn Lung  Nguyễn Tất Thành  Nguyễn Thi Minh Khai  Bitexco Nowzone  Saigon Trade Metropolitan  Hàn Thuyên Phần 2: Dựa trên những đặc điểm của The Coffee Bean & Tea Leaf, quán café này đáp ứng mong đợi của Anh / Chị ở mức độ nào? Vui lòng đánh dấu () vào câu trả lời Thang đo: Rất không đồng ý 1 Không Đồng ý 2 Trung Lập Đồng ý 3 4 Rất đồng ý 5 1 2 3 4 5 1. Tốc độ phục vụ theo thời gian quy định      2. Nắm bắt số lượng khách chính xác      Độ tin cậy 3. Chuỗi các quán café tương đồng 100 Customer Satisfaction, Return Intention & Word-of-mouth (thiết kế, dịch vụ…)      4. Nhanh chóng sữa chữa sai sót trong dịch vụ (cung cấp sai thức uống, sai hóa đơn…)      5. Phục vụ đồ uống chính xác      6. Bãi đỗ xe và thiết kế bên ngoài hấp dẫn      7. Khu vực chỗ ngồi hấp dẫn      8. Nhân viên ăn mặc sạch sẽ, gọn gàng và phù hợp      9. Trang trí nội thất của quán café phù hợp với thương      Cơ sở vật chất hiệu và mức giá 10. Thực đơn đọc dễ dàng      11. Thực đơn trông hấp dẫn      12. Khu vực chỗ ngồi rộng rãi và thoải mái      13. Phòng vệ sinh sạch sẽ      14. Khu vực chỗ ngồi sạch sẽ      15. Ghế ngồi thoải mái      Sự đảm bảo 16. Nhân viên trả lời những câu hỏi đầy đủ      17. Tạo cho khách hàng có cảm giác thoải mái và tự tin      18. Nhân viên cung cấp thông tin về thức uống      19. Tạo cảm giác an toàn cho khách hàng      20. Nhân viên có kinh nghiệm và được huấn luyện tốt      21. Quán café hỗ trợ nhân viên           Khả năng đáp ứng 22. Đáp ứng tốc độ và chất lượng dịch vụ trong giờ cao điểm 101 Customer Satisfaction, Return Intention & Word-of-mouth 23. Cung cấp dịch vụ nhanh chóng      24. Cung cấp dịch vụ đúng và chính xác      25. Cố gắng nhằm đáp ứng những yêu cầu đặc biệt      Sự đồng cảm 26. Nhân viên quan tâm từng khách hàng      27. Làm cho khách hàng cảm thấy đặc biệt      28. Dự đoán nhu cầu và mong muốn cá nhân của        khách hàng 29. Nhân viên đồng cảm và làm yên lòng khách hàng    30. Xem trọng khách hàng      Chất lượng thức uống 31. Chất lương chung về thức uống tốt      32. Vị của thức uống ngon      33. Thức uống được phục vụ bắt mắt      34. Thức uống bổ dưỡng      Tiền và Giá trị 35. Thức uống có giá hợp lý      36. Trả tiền tương ứng dự định      37. Đáng giá với trải nghiệm tại Coffee Bean      38. Kích cỡ ly phù hợp với giá đưa ra      Sự hài lòng 39. Hài lòng chung tại The Coffee Bean & Tea Leaf      40. Hài lòng về chất lượng dịch vụ      41. Hài lòng về chất lượng thức uống           Dự định quay lạị 42. Trở lại cùng quán cafe 102 Customer Satisfaction, Return Intention & Word-of-mouth 43. Ghé những quán khác trong chuỗi thương hiệu      44. Ưu tiên chọn lựa ―Coffee Bean‖ khi uống      Tác động truyền miệng 45. Giới thiệu quán café đến những người khác      46. Kể với bạn bè/ người nhà về kinh nghiệm tại đây      47. Nói những điều tích cực về chuỗi thương hiệu      CÁM ƠN SỰ GIÚP ĐỠ CỦA CÁC ANH/CHỊ ! 103 [...]... role in increasing sale revenue of the company and expanding market share in the industry due to maintaining of old customers (repurchasing) and wining new ones (word- of- mouth endorsement) Moreover, other coffee shops can see and learn from the case of The Coffee Bean & Tea Leaf and apply these valuable lessons for their shops (Both international brands and Vietnamese brands) 7 Scope and limitation: The. .. positive word- of- mouth towards this brand Thanks to it, Coffee Bean can increase the revenue and develop their reputation in the Vietnamese market Originality/value – The influence of customer satisfaction towards return intention and word- of- mouth should be considered importantly From this, managers of Coffee Bean try to satisfy customers and meet their expectation Keywords – customer satisfaction, return. .. partners, relatives, family or even by themselves enjoying true coffee with a new flavor, in modern environment and gaining pleasant memories 2 General information of The Coffee Bean & Tea Leaf: The Coffee Bean & Tea Leaf is American brand established by Mr Herber B Hyman in 1963 at California Since then, the brand is proud of providing more than 22 kinds of excellent coffee and 20 kinds of high-class tea all... determinants influencing customer satisfaction at The Coffee Bean and Tea Leaf? 2 How much is each determinant contributing in this satisfaction? 5 Customer Satisfaction, Return Intention & Word- of- mouth 3 How much does customer satisfaction contribute in the development of customer s return intentions and word- of- mouth endorsement? 5 Research Objectives : The study has three main objectives Firstly, the author... Responsiveness and Empathy ( Service Quality ) , Beverage Quality and Price and Value In addition, the customer satisfaction also has a positive correlation influencing their return intention and word- of- mouth endorsement Practical implications – Managers of The Coffee Bean & Tea Leaf in Vietnam can understand customer s expectation to meet and satisfy them in good ways which determine their return intentions and. .. the market share in the industry, it is essential for The Coffee Bean & Tea Leaf to develop appropriate strategies effectively Meeting customer s expectations effectively as well as increasing customer satisfaction are key elements in the business success From the above reasons, the research is focused on assessing customer satisfaction, return intentions and word- of- mouth endorsement at The Coffee Bean. .. Measurement of Service Quality in the restaurant industry, Food Quality, Price and Value, Return Intention and Word- of- mouth From these, the conceptual framework and hypothesis will be built 1 Customer Satisfaction: There are many reasons explaining the attention of measuring customer satisfaction as the ability of establishing customer loyalty, growing positive word of mouth, leading to repeat purchases and. .. focused on customers of The Coffee Bean & Tea Leaf including the Vietnamese and Foreigners with the age from 18 to 45 in Ho Chi Minh City These customers have had experience with products and service of this shop and return one more to enjoy it This paper is limited to evaluate satisfaction and behavior intentions of customers in Hanoi as well as other customer groups that are not belonging to the interviewed... & RESULTS 6 Customer Satisfaction, Return Intention & Word- of- mouth CHAPTER FIVE: CONCLUSIONS & RECOMMENDATIONS Figure 1: Structure of the thesis 7 Customer Satisfaction, Return Intention & Word- of- mouth CHAPTER TWO: LITERATURE REVIEW This chapter provides a review of literature that introduces theories and dimensions relating to the field of this paper such as service quality, customer satisfaction,. .. scope and limitation, methodology and structure are then continued 1 Background: Coffee is a product that was first introduced in Vietnam from the 19th century and since then coffee has become habitual and familiar with the Vietnamese The bitter and strong taste inside the tongue, the flavor of almond and the pervasive smell of land besides a cup of coffee make people ecstatic Just like that coffee .. .CUSTOMER SATISFACTION, RETURN INTENTION AND WORD- OFMOUTH AT THE COFFEE BEAN AND TEA LEAF IN THE VIETNAMESE MARKET In Partial Fulfillment of the Requirements of the Degree of MASTER OF BUSINESS... Title of Thesis: Customer Satisfaction, Return Intention and Word- of- Mouth at The Coffee Bean & Tea Leaf in the Vietnamese market Advisor: Dr Trương Quang Được I assure that the content of this thesis... find out main factors contributing on the customer satisfaction of The Coffee Bean & Tea Leaf in the Vietnamese market and discover the relationship of it towards return intention and word- of- mouth