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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
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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?
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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
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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.
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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
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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.
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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
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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)
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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
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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
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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
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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!
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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
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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
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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
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Xem thêm: Customer satisfaction, return intention and word of mouth at the coffee bean tea leaf in the vietnamese market, Customer satisfaction, return intention and word of mouth at the coffee bean tea leaf in the vietnamese market
