Factors influencing customer loyalty of vietjet air join stock company

C: Convinience Limitations of this topic:  Subjects of study are business customers with its own characteristics on demand service, criteria for evaluating service quality and perceivin

RESEARCH PROJECT (BMBR5103)

FACTORS INFLUENCING CUSTOMER

LOYALTY OF VIETJET AIR JOIN STOCK COMPANY

STUDENT FULL NAME : MAI DUC LOC

STUDENT ID : CGS00018509

ADVISOR’S NAME & TITLE : ASSOC.PROF PHAN DINH NGUYEN

ADVISOR’S ASSESSMENT

Advisor’s Signature

PLAGIARISM STATEMENTS

Topic: FACTORS INFLUENCING CUSTOMER LOYALTY OF VIETJET AIR JOIN STOCK COMPANY,

made by: MAI DUC LOC

I assured this is my work The data and results referred

to in the thesis are honest and have never been published in

any other work

ACKNOWLEDGE

I respectfully sincere thanks to the school board, organizations and individuals imparted knowledge,

discussion, providing the necessary documents, together with

the answers and help me finish this essay

I especially thank to Assoc Prof PHAN DINH NGUYEN, to guide me patiently to complete the thesis

Information and advice he is very valuable not only for

research but also for my real life

And, I am also grateful to all customers, family and friends who helped me in the past years

Respect

ABSTRACT

Research topic: "FACTORS INFLUENCING CUSTOMER LOYALTY OF VIETJET AIR JOIN STOCK COMPANY " was conducted from Oct 2015 to Dec 2015

Research objective:

 Determine the wishes of customers for airline

 Building a study model to measure customer loyalty based on understanding the factors that affect customer loyalty

 Assess customer loyalty with airline service and product

 Propose some measures to improve levels of customer satisfaction with airlineing service and product

 Research methods: using mainly two methods

 Qualitative research: discussions, interviews, edit scale and model

 Quantitative research:

- Questionnaire design with content including: 4 scales about customer information,

30 scales about measuring factors affecting customer loyalty, 5 scales to determine the level of customer loyalty and ultimately customer proposals for the airlne

- Data collection: primary and secondary

- Data processing: reliability analysis, factor analysis, Pearson coefficient analysis, regression analysis, ANOVA analysis, establish general pattern and test hypotheses

With samples of 150 questionnaires were selected as evenly distributed as in HCM city area

The result is shown in the following regression equation:

CL = 0,405*SQ + 0,433*PR + 0,175*C

Of which:

SQ: Service Quality

C: Convinience

Limitations of this topic:

 Subjects of study are business customers with its own characteristics on demand service, criteria for evaluating service quality and perceiving price services

to individual customers, so research results can not response used simultaneously to all customers

 Research scope limited to customers using the service at Vietjet Air Join Stock Company, should not be assessed on overall customer groups in different local and potential customers may not use airline service

 Study looks at just the time and number of airline customers use, not understanding customer loyalty in relation to business, financial resources and ethnic factors

CONTENTS

Chapter One - Introduction 8

1.Introduction 9

2 Reasons choose topics: 10

3 Research objectives 10

3.1 Overall objectives 10

3.2 Specific objectives 10

4 The significance of science and practical subjects 11

5 The importance of the research problem 11

6 Scope of research 11

Chapter Two - Reviewing documents 12

1 Previous models 13

1.1 Perceived Value 16

1.2 Price 17

1.3 Quality of Service 17

1.4 Brand Image: 18

1.5 Belief 19

1.6 Customer satisfaction 20

1.7 Customer loyalty 21

2 Research model and Hypotheses 23

Chapter Three - Methodology 24

1 Research Method 24

2 Primary data collection 25

2.1 Paper survey as the data collection method 25

2.2 Questionnaire design and data collection 25

Chapter Four - Data Analysis 26

1 Sample description 27

1.1 Servive Quality (SQ) 28

1.2 Price (PR) 28

1.3 Brand Image (BI) 28

1.4 Percieved Value (PV) 29

1.5 Product (P) 29

1.6 Convinience (C) 29

2 Quantitative research 30

2.1 Target 30

2.2 Procedure 30

2.3 Result 31

2.4 Reliability and Validity 33

a) Reliability test 33

b) Validity test 33

3 Hypothesis tests 34

3.1 Multivariable Linear Regression analysis 34

3.2 Path analysis 35

Chapter Five: Results And Disscussion 35

1 Descriptive Analysis 36

1.1 Service Quality Descriptive: 36

1.2 Price Descriptive 36

1.3 Brand Image Descriptive 38

1.4 Percieved Value Descriptive 38

1.5 Product Descriptive 39

1.6 Convinience Descriptive 40

1.7 Customer Loyalty 41

2 Analysis Scale 42

2.1 Cronbach's alpha 43

2.2 Factor Analysis 50

3 General research model 64

3.1 Research model 64

3.2 Assumptions 65

4 Testing of the model study 65

4.1 Analysis Pearson correlation coefficient 65

4.2 Regression Analysis: 66

4.3 Anova analysis 70

Chapter Six - Conclusions and Recommendations 72

1 Conclusion 72

2 Suggestions for Vietjet Air 72

2.1 Price policy 73

2.2 Service quality 74

2.3 Brand Image 74

APPENDIX 77

CHAPTER ONE - INTRODUCTION

1 Introduction

Vietjet air (Vietjet Aviation Joint Stock Company), operating under the name VietJet Air, the airline's first privately Vietnam, with headquarters at Tan Son Nhat International Airport City Ming and branch at Noi Bai International Airport in Hanoi June 12, 2013, VietJetAir signed agreements in principle with the manufacturer Airbus ordered a total of 100 aircraft types for VietJetAir, which has ordered 62 units, 30 units are entitled to purchase and 8 units rent with time receiving to 2022 with a total transaction value under the manufacturer's pricing of about $ 9.1 billion

VietJet Air was formed from three main shareholders of T & C, Sovico Holdings and Commercial Airline Joint Housing Development Ho Chi Minh City (HD Airline), with registered capital of an initial 600 billion (equivalent to 37.5 million at the time of contribution) The airline was the Minister of Finance of Vietnam approved license in November 2007 and became 4th Airlines Vietnam, after Vietnam Airlines, Jetstar Pacific and Vietnam Aviation Service Company (VASCO) and is Private airline's first Vietnam December 20, 2007, the Minister of Transport of Vietnam Ho Nghia Dung has awarded a business license for air transportation VietJet Air

According to initial plans, estimates VietJet Air officially put into operation

in late 2008, but due to fluctuations in gas prices, rising oil should VietJetAir decisions postponed and will begin in November 2009 (the fourth quarter) VietJet Air routes start in the fourth quarter In late April 2009, Sovico Holdings has acquired all shares of T & C Group and become the largest shareholder, owning 70% of shares of VietJetAir February 2010, the airline Air Asia bought 30% shares of VietJetAir

2 Reasons choose topics:

Customer loyalty is necessary to maintain regular operations of the airline However, in the competition, creating customer loyalty is no assurance that customers will remain with the airline for long Relations with customers as a

"living entity", so airlines need attention and care "living entity" is a regular basis This means that the responsibility for developing and maintaining relationships with customers, making customer satisfaction the airlines Airlines need to be proactive

in maintaining and developing this relationship

Therefore, study of customer loyalty for airlines is an important job, to perform regular, continuous to be able to respond promptly to changes in their needs so that we can able to better serve our customers and make the customers always satisfied when using the services and products of the airline The theme

"Research customer loyalty for product businesses, services Vietjet Air Joint Stock Company" is done for no purpose and the author hopes to get more attention is contributing to the problem are more complete study

3.2 Specific objectives

 Identify the customer's desire for airlines

 Develop model studies measuring customer satisfaction is based on understanding the factors that affect customer loyalty

 To assess the level of customer loyalty with products and airline services

 To propose some measures to raise the level of customer loyalty with the products and airline services

4 The significance of science and practical subjects

- Research project identified factors affecting the level of customer loyalty in a complete and accurate Since then the airline will have the appropriate improvements to enhance the operational efficiency of the airline and help customers feel satisfied when looking to the airline

- The findings served as the basis for the development of products, and new services that meet customer needs With the analysis of the factors relating to loyalty of the customer, the airline will better understand customer needs and quality of services that airlines offer Here's how to evaluate objectively and generalized high performance measure of airlines in the eyes of customers

- Based on the study of customer loyalty with the services of Vietjet Air Joint Stock Company in recent years, the author will propose a number of measures to enhance customer loyalty

5 The importance of the research problem

The theme is an important resource to help leaders Vietjet Air Joint Stock Company regional basis to accurately assess the level of loyalty of business customers for products and services of the airline so that there improvements in the quality of products and services to serve customers better contribute to improving the value of the airline, implementing the development strategy of Vietjet Air Joint Stock Company

6 Scope of research

- The research will focus on Vienamese passengers who use the services of VietJetAir Foreigners may not participate in the survey by the culture and different levels of awareness

- All secondary data concerning VietJetAir will be collected from December

2011, the day when the airline started its first flight

- In this study, the survey will be used and it will be done only in Tan Son Nhat airport Because in this field, have thoundsands passenger waiting his flight a day; so it is easier for authors to collect and examine it does not cost much

CHAPTER TWO - REVIEWING DOCUMENTS

1 Previous models

In this section, some models are mentioned as references for the thesis conceptual framework

European index of customer satisfaction

Figure 1: The European Model of Customer Satisfaction

This model is one of the famous in Europe This model, Ball et al believes that customer satisfaction is the simultaneous effect of the following factors: image, perceived value, perceived quality and expectations He explained that the loyal customers of a product or a service through indicators of customer satisfaction when

it is directly or indirectly influenced by these factors

Andreas H Zins, 2001

Figure 2: Model impact on customer loyalty in the industry of commercial airlines

in the book of the International Journal of Service Industry Management, Andreas

H Zins investigate the antecedents of customer loyalty in the industry of commercial aviation by building a model study of factors directly and indirectly affects customer loyalty He will study the image of the service providers is, along with the quality of service and customer satisfaction, a strong component, illustrated and explained to loyal customers in the future

Steven A Taylor, Kevin Celuch, Stephen Goodwin, (2004)

Figure 3: Model of Steven A Taylor in the marketing of heavy equipment

Writing a book on marketing in the industry heavy equipment manufacturer, Steven A Taylor and his partners believe the brand values and beliefs are consistently the most important prerequisite for both forms the behavior and attitudes of customer loyalty There is also evidence that the basic models formed the form of behavior than the attitude of loyalty can vary between studies

Ahmad Jamal, Kyriaki Anastasiadou (2009)

Parasuraman was a pioneer in researching the quality of service in 1985 The success of the study make very useful tools to help entrepreneurs achieve results in quality service through customer research line survey "SERVQUAL is a compound word from two words:" service "and" quality "This model has received much positive praise from experts After that, the model has been followed through continuous optimization focuses on the concept of "perceived quality" of consumers Quality perceived by customers as the most objective assessment of the quality of service

Ahmad Jaman and Kyryaki Anastasiadou develop their research on the impact

of service quality dimensions on customer loyalty based on SERVQUAL model of Parasuraman The study published by the European Journal of Marketing in 2009 The two authors study the direct impact of the experts in loyalty and efficiency of professional conditioning of the relationship between satisfaction and loyalty

Figure 4: Model SERVQUAL

1.1 Perceived Value

Martin Ruiz et al., (2007) stated that "the perception of the buyer on the value represents a balance between the quality or the benefits that they are aware of the product compared to the sacrifice that they feel get by paying the price " Here, the ratio quality / price approach this as a 'cash value-for-' (Huber et al., 2007) to understand the value perceived by customers to be preferred over a multi-dimensional approach The importance of price factors for assessing the value of a service is also emphasized by Anderson et al (1994) Besides the actual monetary cost, component sacrifice of the perceived value also includes non-monetary costs such as time or risk Value perception is very subjective and more personal, and therefore changes in the consumer (Zeithaml, 1988)

Customers deeming the price paid for a service that determines the level of quality they can expect (Teboul, 1991 at: Park et al, 2006, p 364) Based on a proposal by Zeithaml that perceived value is personal and idiosyncratic, the level of quality expected to change among customers Overall, the ratio quality / price is reflected by the business model is no different Low-cost airlines often offer cheap fares, and focus on their main services for air transport, while operators provide more network services at a higher price Value perception has a positive impact on the brand image, because customers think it is worthy to use the service and they will make positive remarks about the relationship with certain brands

Zeithaml and Bitner (1996) describes the value of the service as the key competitive factor define how services are bought and sold Value perception was further suggested that an important prerequisite for the future intentions (Bolton & Drew, 1991) Blackwell et al (1999) demonstrated empirically a crucial connection between value and repeat purchase behavior in pharmaceutical services Park et al (2006) asserts that there is a positive relationship between perceived value and customer satisfaction, and between perceived value and loyalty in the airline industry

Many researchers have shown that customer satisfaction affects price perceptions and beliefs (Oliver, 1997; Peng and Wang, 2006; Cheng et al, 2008; Kim et al, 2008) Regular customers switch mainly due to some issue price, price awareness, equal pricing practices or fraud (Peng and Wang, 2006) Therefore, to increase customer satisfaction, it is essential for service companies to proactively manage their customers' perceived price, performing an attractive price, offering price of management, lower prices without reducing quality, etc

1.3 Quality of Service

The concept of satisfaction and the quality is often equated, although the two concepts have different understanding (Parasuraman & CTG, 1988) Overall, satisfaction is considered to have a broader concept of service quality assessment, with particular focus on the service aspect

Ostrowski et al (1993) stated that "It is essential that measures the quality of customer service oriented, as there may be ideological differences between management and the expectations of our customers." Moreover, the quality of

service is considered a performance characteristics and brands are thus part of the image of the brand's customers Therefore, the concept of service quality as perceived by customers as appropriate Other Previous studies have demonstrated that service quality is the cause of satisfaction (Cronin & Taylor, 1992) The reason

is related to quality of service delivery, while satisfaction is assessed only after using the service If the service was improved but not based on customer demand,

"s, it will never make customers feel satisfied

Service quality has been identified as a factor of customer satisfaction and customer choice (Ostrowski et al, 1993; Taylor & Barker, 1994; Young et al., 1994) A number of different sizes have been proposed to measure the quality of services in the context of the airline (Nadiri et al, 2008) Here, according to the results of an exploratory study conducted by Park et al (2006) to determine the size

of the air service quality, quality air service consists of three general dimensions: reliability and customer service, in-flight service, and is convenient and easy approach If the trademark is considered airlines offer service to customers, evaluating the quality of services to promote the positive assessment of the relationship with the brand It's also a positive impact on confidence and trust that customers have in the relationship with the airline brand Záhořík and Rust, 1992; Cronin & Taylor, 1992 also confirmed the existence of a positive relationship between service quality and customer loyalty

1.4 Brand Image:

Accoring to Barich & Kotler, 1991, the brand image is an overall picture of a business in the minds of customers It is created through a process of evaluation and accumualted information of enterprises such as brand building, product / services diversification A picture airlines can be described as Images of passengers that due to accumulated experience is done through a contact and interactive brand (Keller, 2003 and Grönroos, 2004)

Zeithaml & Bitner (1996) and Andreassen & Lindestad (1998) shows pictures have significant impact on the choice of the client company when the attributes of the service are difficult to evaluate Lovelock (1984 in: Andreassen & Lindestad, 1998) has stated that: "the image likely to play only a minor role in deciding the choice of the customer, unless the service is considered to be close competition as identical in terms of performance, price and availability "

Air transport, especially on short haul flights, with the ability to turn into a fairly generic service Moreover, the properties of airline services is difficult to assess before the consumption experience Photo of an airline is an important factor that affects the choice of airline passengers This argument is further supported by Park et al (2006), who declared that the purpose of the image of the airline is to reflect a special competence in comparison with competitors, implying that the brand stands for distinctiveness and attractiveness for visitors Airlines A favorable image can contribute to an airline become the preferred choice of customers (Andreassen & Lindestad, 1998), so that is one aspect of customer loyalty

1.5 Belief

Trust is the willingness to rely on brands that customers have confidence Beliefs are beliefs, feelings, or the expectation of a "brand of trust (Moorman et al., 1992) A brand is considered reliable if customers trust the brand" is the the good in the relationship

In addition, the reliability of a brand as perceived by the customer to reduce concerns of opportunistic behavior in case of unexpected events (Bendapudi & Berry, 1997) If airline customers consider brand's preferred airline they are reliable and to demonstrate integrity in all situations, they can make decisions faster which airline to choose from and so That saves time while feeling confident about their decisions

Some studies have emphasized the trust as an important platform for market relationships (Crosby et al, 1990; Parasuraman et al, 1991 at: Berry, 1995; Morgan

& Hunt, 1994) While Chaudhuri and Holbrook (2001) demonstrated that brand trust is directly related to the purchase and attitudinal loyalty, Hennig-Thurau et al (2002) suggest that many recent experimental results (Grayson & Ambler, 1999) questioned the direct influence of the trust into loyalty Even if there is no clear understanding of the relationship between trust and loyalty of customers, Hess and Story (1995) suggested that any personal relationship, whether individuals or between a person and a brand, which is built on trust Trust is particularly important for the establishment of relationships based on service because the service invisible

1.6 Customer satisfaction

Satisfaction is a leading factor in determining loyalty (Garbarino & Johnson, 1999; Anderson & Fornell, 1994) The operating principle is to always satisfy our customers' needs and requirements of customers as a source of revenue and profits for the company As of customer satisfaction with the product or service, repurchase rate from visitors goods is high Moreover, when customers feel satisfied, they tend

to say is good for other customers

Customer satisfaction and loyalty is highly relevant According to Oliver (1999), customer satisfaction occurs through the use of the product, is a necessary step to determine loyalty Kotler (2000) identified that satisfaction is a person "s the feeling of pleasure or disappointment resulting from comparing a product awareness activities related to their expectations That" s means, While the company 's higher performance than expected, increasing customer satisfaction However, if the performance is lower than expected, customer satisfaction fell They have the same opinion, Karma (2004) agree that customers will be satisfied when making estimates was more than the target, whereas dissatisfaction occurs when the satisfaction lower than expected According Pail et al (2009 ), customers who are merely satisfied and they find it easy to change when other companies are offering a better cost or pack while the importance of customer satisfaction is emphasized business Generally, satisfaction related to whether the service meets the customer 's needs and expectations

According to Selnes (1993), an organization can increase their sales and customer loyalty by providing great satisfaction of the customer So customer satisfaction happened is one of the focal points for all businesses especially those in the service industry Customer satisfaction is measured to maintain existing customers and results, efficiency and development of enterprises (Parahoo, 2006) Benner (2009) also believe that customer satisfaction is one of the important factors that help increase long-term performance more companies to maintain customer loyalty Customer satisfaction is also a fundamental element in improving the production process and the relationship of the end user

The main objective of the aviation industry is providing outstanding service and capacity Rachel & Andy (2010) believes that excellent service is vital while the number of customer segments completely satisfied is an important factor as assessed by some analysts for higher profits A business organization must regularly assess consumer satisfaction to analyze and determine whether customers are satisfied or not According Torbica & Stroh (2001), especially in the aviation sector, the level of customer happiness are obviously realized late in the process, while the majority of customers spent money now When the research enterprise of the characteristics of a service or product affect the satisfaction of consumers, their task is to adapt to their current strategy in a way that can lead to the maximum satisfaction of the consumer

1.7 Customer loyalty

a) The definition of customer loyalty

Customer loyalty has been widely studied and loyalty concepts have been presented in many literatures Some authors have their own definition and explanation of loyalty

Dick & Basu, 1994 points out a definition of customer loyalty is the strength

of the relationship between an individual "relative attitude and repeat patronage, mediated by social norms and situational factors

Another definition that it frequently appears in marketing literature from Oliver, 1999: "a deeply held commitment to rebuy or repatronize a product / service

priorities consistent in the future, thereby causing Same- brand repeated or last purchased brand set, although situations influence and marketing efforts have the potential to cause behavioral change "

b) The impact of customer loyalty to the income of the business

Customer loyalty is one of the topics of interest in market research In particular, the content focuses on the problems that customers are willing to create and maintain relationships with service providers (Swan, Trawick & Carroll, 1982; Garfein, 1987; Anderson, 1998; Bolton, 1998)

In business, every company can achieve profitability goals And the customer is

an important resource to help companies achieve their goals And some research suggests that there is a direct relationship between a company 's loyal customers and its profitability (Reichheld & Sasser, 1990; Roger Hallowell, 1996; Berry, 1995) Some of authors demonstrate that customer loyalty increases revenue for the company (Schlesinger & Heskett, 1991; Berry, 1995) The loyalty is done by buying more, higher prices, and create a reputation the company through word of mouth positively (Ganesh et al., 2000) These are not just regular customers buy the company 's products, but also the marketing - the company needs to introduce products or service for family and friends (Hoffman et al, 1995; Zeithmal et al, 1966) Moreover, a customer loyalty can help companies reduce costs (Reichheld, 1993; Berry, 1995), because the cost is less than if the companies provide services and meet customer loyalty (Reichheld, 1996), and since the cost of sales programs and marketing for customer loyalty can be extended in stages of the customer life (Clark & Payne, 1994) Profits from the sales loyalty and establish low-cost, and low cost for brand recognition Revenue will grow through acquisitions Additionally, customers are willing to pay more because they are familiar with the company's staff and services

"s (Zeithmal et al., 1996) The company ''s profits gained from spending Lower operating costs while the relationship between client and supplier is actually closed because customers to easily accept the company 's marketing efforts for the new product or service Furthermore, customers Have questions less and easier to overlook small faults (Zeithmal, 1996)

Customers often choose to buy a normal product that they feel is best for them while loyal customers pay more attention to the history, future and the success of the brands they trust (Reichheld & Sasser, 1990; Clark & Payne, 1994) They are always ready to express what they think about the service and trust companies will do better and better The company will easily get the correct information and the most comprehensive marketing plan carefully in the future when contact with such clients

2 Research model and Hypotheses

Figure 5: Research model and Hypotheses

H1: Service Quality has influence on Customer Loyalty

H2: Price has influence on Customer Loyalty

H3: Brand Image has influence on Customer Loyalty

H4: Percieved Value has influence on Customer Loyalty

H5: Product has influence on Customer Loyalty

H6: Convinience has influence on Customer Loyalty

CUSTOMER LOYALTY

PRICE

BRAND IMAGE

PERCIEVED VALUE

SERVICE QUALITY

ENCE PRODUCT

CONVINI-CHAPTER THREE - METHODOLOGY

1 Research Method

There are two helpful research methodologies: quantitative and qualitative Bryman & Bell (2003) pointed out that the connection between theory and research, epistemological considerations and ontological considerations, quantitative and qualitative research can be considered as two distinctive clusters of research strategy Quantitative data may be stated as the statistical information namely figures, while qualitative may be explained briefly as the sort of information which

is available as transcript

Bryman defined qualitative research as the move towards the revision of the communal across the globe that begins to portray and evaluate the traditions and invidual activities from the perceptive of those being observed Saunders et al (2007) believed that qualitative research entails the compilation of a mixture of observed sources such as case studies, individual experiences, reflective discussions, past interactions and visual presentations that explained the regular and challenging instants and significance in personal lives According to Bryman (2001), qualitative research is a research approach that generally highlights numbers relatively in the data collation and testing; and the approach that is applied is inductive and dealt with subjective conclusions

Quantitative methodology is primarily based on positivist The function of quantitative methodology is to found proper link between correlated variables (Malhotra & Birks, 2007) According to Bryman (2001), quantitative research is explained as the gathering of statistical numbers in addition to displaying an outlook

of the link involving the concepts and course study as study and it final achieve intent result

In this research paper, author had chosen those two methodologies In there, quantitative is the main methodology as it targets to determine the relationship between the identical elements and also to analyse the particular problem In the

other hand, qualitative is used to collect the secondary data The secondary data is collected from books, articles, previous research and from internet It is useful to review the theories of the factors which are introduced in the research model in chapter 1

2 Primary data collection

2.1 Paper survey as the data collection method

To collect the primary data needed to test the hypotheses, paper survey was chosen as the data collection method This choice has a few advantages with author when comparing to other survey methods such as personal interviewing, telephone interviewing or mail and internet survey This kind of survey presents a cost efficient method to collect a great amount of data in relative frame

In this survey, the self-completion questionnaire is developed The self- completion questionnaire is very similar method of business research, and the research instrument has to be especially easy to follow and its questions have to be particularly easy to answer (Bryman & Bell, 2003) Meanwhile, whether to ask a question in open or closed format is one of the most significant considerations for many researchers According to Bryman & Bell, 2003, closed question has some advantages: it is easy to process answer; it enhances the comparability of answers, and makes them easier to show the relationships between variables Finally, closed questionnaire is chosen for this research

2.2 Questionnaire design and data collection

The questionnaire is divided into 2 parts Before coming to the first part, respondents are introduced to the survey and inform about its purpose and background In the first part, participants are asked to show their individual information by answering 4 questions about their gender, age, number of flights with Vietjet Air, and their frequencies in using Air transportation The second part

is the major part which contains all seven construct in the research model with total

35 statements (each construct includes 5 statements) A 5-point Likert scale was chosen as the rating scale, ranging from „strongly disagree‟ (1 point) to „strongly agree‟ (5 point) All the statements in this research questionnaire is shown in Appendix A

A pre-test was conducted in order to ensure that the questionnaire is easy to understand and fill in The raw draft was sent to 3 participants who have great knowledge and experience in commercial airline industry which one of them is the Representative of Vietjet Air After receiving remarks from them, a new draft was composed before delivered to 30 testing respondents who had several times travel

by air plane These people truly commented about the statements in questionnaire whether they are easy to understand and fill in or not Then, the questionnaire was one more time adjusted to be the final questionnaire and widely delivered to respondents

Figure 6: Questionnaire design

In order to collect data, there are 150 samples were handed in to anticipants who was waiting for boarding at the lounge As brief description in Chapter 1, the chosen respondents are from 18 to 55 years old and already used Vietjet Air at least

CHAPTER FOUR - DATA ANALYSIS

From 2 to 3 24%

From 3 to 4 30%

Over 5 38%

Times Fly With VJ

Undergo qualitative research step, the scale and impact factor measure customer loyalty is determined as follows:

1.1 Servive Quality (SQ)

 Vietjet staffs/crews have formal attitude and professional working skills

 Vietjet flights have been operated ontime based on estimate schedule

 Vietjet provide flight information clearly and easily to understand

 Vietjet staffs/crews show their enthusiasm while serving customers

 Vietjet Air has a good policy to support disability passengers

1.2 Price (PR)

 Vietjet ticket price is reasonable

 The fee for luggage is reasonable

 Food, baverage and gifts sold in flight have reasonable price

 Ticket price policy is suitable for every subject

 Vietjet ticket price is more competitive than other airline‟s

From 18 to 35 58%

From 35 to 50 42%

Age

1.3 Brand Image (BI)

 Vietjet is the famous airline in Vietnam market

 When making decision to buy air ticket, Vietjet is your first think about

 It is easy for you to recognize Vietjet Air‟s logo and Slogan

 Vietjet‟s Advertises are attractive

 You imagine good quality when seeing Vietjet‟s logo and signboard

1.4 Percieved Value (PV)

 You feel safe and comfortable when flying with Vietjet

 Vietjet staffs are very responsible

 Vietjet‟ service is worthy with your payment

 You think that taking flight with Vietjet is better than other means of transport

 Vietjet‟s policies are reasonable

1.5 Product (P)

 Vietjet Air has divesity classcification of ticket for choosing

 The attached benefits for each kind of ticket are reasonable with their price

 Compensation policies for customers in case of delayed or canceled flights that are suitable

 Vietjet Air operates many domestic and international flight routes

 Vietjet Air has a various time schedule for each flight to chose

1.6 Convinience (C)

 Vietjet Air has more ticket agent

 There are many payment method for choosing when you buy Vietjet Air’ ticket

Vietjet Air’s ticket is flexible for changing date, route of flight, or name of passenger

 Online check-in system of Vietjet Air is popularity

 Vietjet Air has linked with many bank in Vietnam

Through qualitative research step, the scales are fully determined (30 scales of

6 factors affecting customer loyalty) to serve to establish a questionnaire survey and subsequent quantitative research.though they were waiting for Vietjet Air‟s flight or others‟ To ensure that the respondents already enjoyed the Vietjet Air service, the author asked them whether they flied with Vietjet Air or not If any customer say that he has never used Viet Air service, that one would not be received the questionnaire The sample collection was conducted in about 3 weeks with some help from author‟s colleagues

2 Quantitative research

2.1 Target

Quantitative research was conducted to test the scale in the research model This is a detailed analysis of the data collected through questionnaires sent to the customer to determine the logical correlation of these factors together and then set out the specific results of theses lamb

2.2 Procedure

Asian Construction questionnaire

a) b Determine the number of samples needed for research

b) c Send questionnaires to customers

c) d Contact the customer to track the response

d) f Data processing through the use of SPSS analysis tools in the following order:

 Descriptive Analysis

 Analysis of the reliability of the scales

 Factor Analysis

 Develop integrated research model

 Accreditation through analytical models Pearson, regression and ANOVA analysis

2.3 Result

One of the forms of measurement are used most commonly in quantitative research is due Rennis Likert scale (1932) introduced He gave the kind of scale 5 common level from 1-5 to learn the extent of the respondents assessed Usually, we will use the scale and multi-scale aspects single aspect in the process of establishing the scale and established questionnaire

According to Chu Hoang Trong Nguyen Mong Ngoc (2008) shall be representative of the number of samples selected research will be appropriate if the observations (sample size) must be at least 4 or 5 times the number of observed variables Model study in the thesis consists of 6 independent factor of 30 observed variables Therefore, the sample size required is 140 or more samples The number

of samples used in the study was 150 samples should be representative of the sample is guaranteed to perform research

Thus, after collecting appropriate sample quantities, the author uses SPSS tools to analyze the data with encrypted scales as in the table below and detailed results will be presented in Table below:

SERVICE QUALITY (SQ)

1 SQ1 Vietjet staffs/crews have formal attitude and professional working skills

2 SQ2 Vietjet flights have been operated ontime based on estimate schedule

3 SQ3 Vietjet provide flight information clearly and easily to understand

4 SQ4 Vietjet staffs/crews show their enthusiasm while serving customers

5 SQ5 Vietjet Air has a good policy to support disability passengers

PRICE (PR)

6 PR1 Vietjet ticket price is reasonable

7 PR2 The fee for luggage is reasonable

8 PR3 Food, baverage and gifts sold in flight have reasonable price

9 PR4 Ticket price policy is suitable for every subject

10 PR5 Vietjet ticket price is more competitive than other airline‟s

BRAND IMAGE (BI)

11 BI1 Vietjet is the famous airline in Vietnam market

12 BI2 When making decision to buy air ticket, Vietjet is your first think about

13 BI3 It is easy for you to recognize Vietjet Air‟s logo and Slogan

14 BI4 Vietjet‟s Advertises are attractive

15 BI5 You imagine good quality when seeing Vietjet‟s logo and signboard

PERCEIVED VALUE (PV)

16 PV1 You feel safe and comfortable when flying with Vietjet

17 PV2 Vietjet staffs are very responsible

18 PV3 Vietjet‟ service is worthy with your payment

19 PV4 You think that taking flight with Vietjet is better than other means of

transport

20 PV5 Vietjet‟s policies are reasonable

PRODUCT (P)

21 P1 Vietjet Air has divesity classcification of ticket for choosing

22 P2 The attached benefits for each kind of ticket are reasonable with their price

23 P3 Compensation policies for customers in case of delayed or

canceled flights that is suitable

24 P4 Vietjet Air operates many domestic and international flight routes

25 P5 Vietjet Air has a various time schedule for each flight to chose

CONVINIENCE (C)

26 C1 Vietjet has more ticket agent

27 C2 There are many payment method for choosing when you buy Vietjet

Air’ ticket

28 C3 Vietjet Air’s ticket is flexible for changing date, route of flight,

or name of passenger

29 C4 Online check-in system of Vietjet Air is popularity

30 C5 Vietjet Air has linked with many bank in Vietnam

CUSTOMER LOYALTY (CL)

31 CL1 You are willing to fly with Vietjet Air in future

32 CL2 It is easy for you to ignore Vietjet‟s mistake

33 CL3 You are willing to introduce Vietjet to your families/friends

34 CL4 It is defficult for you when deciding to fly with other Airlines

35 CL5 You are going to be Vietjet frequent customer

2.4 Reliability and Validity

The statistical instrument SPSS is used to analyse the data After collecting samples from respondents, all complete questionnaire data was input by manual into SPSS

Each research and research method should be examined critically on its reliability and validity (Finn et al 2000) The reliability of a method is related to the consistency

of the results obtained from it (Bryman & Bell, 2003), while validity is defined as how much any measuring instrument measures what it is intended to measure

a) Reliability test

Reliability test was conducted in this research by Cronbach‟ s Alpha test After running the test, if result shows that the Cronbach‟ s Alpha is higher than 0.6, that result is acceptable (Hoang Trong, Mong Ngoc C N., 2008)

b) Validity test

The technique which is used in validity test is Exploratory Factor

Analysis(EFA).Factor analysis is an interdependence technique in that en entire set

of interdependent relationships is examined without making the distinction between dependent and independent variables (Paurav

Shukla, 2010) It is used in some circumstances:

- To identify underlying dimensions, or factors, that explain the correlations among a set of variables

- To identify a new, smaller, set of uncorrelated variables to replace the original set of correlated variables in subsequence multivariate analysis (regression

3.1 Multivariable Linear Regression analysis

Linear regression analysis is a statistical procedure used to find the relationships among a set of variables (Hoang Trong, Mong Ngoc C N., 2008) In regression analysis, there is one dependent variable, and one or more variables that are related to it

The linear regression analysis is expressed in equation: y = a1x1 + a2x2 + … + anxn + b

y: dependent variable

x1, x2, , xn: Independent variables b: constant

a1, a2, , an: slopes

Applied in this research, regression analysis is used in turn to examine the existence of relationships between dependent and independent variables Concretely, the author will perform of using regression to conduct the tests of hypotheses of research model

3.2 Path analysis

Path analysis is an extension of regression analysis It is a statistical technique used primarily to examine the comparative strength of direct and indirect relationships among variables (Lleras, 2005)

In this research, path analysis is conducted to calculate the strength of relationship of the indirect factors (perceived value, price and service quality) and direct factors (brand image, trust and customer satisfaction) to the Customer loyalty factor based on the results of regression analysis De Vaus, 2012 considered the level of strength of those relationships in the table below:

0.01 – 0.09 Trivial relationship 0.10 – 0.29 Low to moderate relationship 0.30 – 0.49 Moderate to very strong 0.50 – 0.69 Substantial to very strong 0.70 – 0.89 Very strong relationship

≥ 0.90 Nearly perfect relationship

CHAPTER FIVE: RESULTS AND DISCUSSION

of respondents argued that Vietjet Air flights are not really on time, they are usually delayed due to any reasons

1.3 Brand Image Descriptive

1.4 Percieved Value Descriptive