Custommer centric marketing empirical evidence from logistics sector in vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business - Nguyen Thi Hoang Linh CUSTOMER CENTRIC MARKETING: EMPIRICAL EVIDENCE FROM LOGISTICS SECTOR IN VIETNAM MASTER OF BUSINESS (Honours) Ho Chi Minh City – 2015 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business - Nguyen Thi Hoang Linh CUSTOMER CENTRIC MARKETING: EMPIRICAL EVIDENCE FROM LOGISTICS SECTOR IN VIETNAM ID: 22120093 MASTER OF BUSINESS (Honours) SUPERVISOR: NGO VIET LIEM Ho Chi Minh City – 2015 ACKNOWLEDGEMENTS I would not have been able to complete my thesis without the advice, assistance, understanding and encouragement of my supervisor, my family and my friends I would like to gratefully and sincerely acknowledge their assistance and support First of all, the most important person I would like to thank is my supervisor, Mr NGO VIET LIEM Thanks to his valuable advice and generous guidance throughout the journey of this thesis, so that I can finish my thesis Secondly, I would like to thank all of the staff at International School of Business – University of Economics Ho Chi Minh City who are always enthusiastic and give me a lot of administrative support, assistance and understanding Furthermore, I would like to express my grateful thanks to my friends and all the respondents who participated in filling the questionnaires and provided the valuable information for this study Finally, I would like to give my gratefulness to all classmates who have been sharing with me all their knowledge and experience as well as happiness and difficulties during MBA course I would not complete my thesis without their encouragement and support Personally, I wish to express my deep gratitude to my parents and my brother for their spiritual support and encouragement during the time of study In brief, it has been a long journey and I have grown in so many ways I would like to say ―thank you‖ again for the involvement of everyone who has helped me to complete this thesis -iABSTRACT Following the report of World Bank (2014), performance logistics index in Vietnam is lower than the other countries: Singapore, Malaysia, Thailand, China; additional, in the future, logistics industry in Vietnam face to a higher competition when TPP allow foreigner companies invest in Vietnam easier Hence, manager has to find the right strategy and the best solution to improve their performance and keep the market share According to theories and the previous studies, customer-centric marketing consistently entails two critical actions which are helpful for companies in this condition: understanding and meeting individual customers satisfaction The paper explores some mediating factors (customer orientation and relationship marketing activities) affect and direct affect from job satisfaction to sales performance in logistics companies in Vietnam Through this thesis, logistics manager can understand more about characteristics of human in logistics area, then they can make decision about HR strategy and benefits to improve both sales performances and the organizational performance The result shows that customer orientation and relationship marketing also has a mediating affect to relationship between job satisfaction and sales performance positive But customer orientation has a higher mediating affect to relationship between job satisfaction and sales performance than relationship marketing variable However, adding both customer orientation and relationship marketing activities, relationship between job satisfaction and sales performance will be negative It means managers also have to pay attention highly to employee who has high performance in logistics area When employees have a higher performance, they will have a difference reaction with new coming period Key words: customer centricity, sales performances, job satisfaction, customer relationship marketing, customer management, customer orientation -iiTABLE OF CONTENT TABLE OF CONTENT LIST OF FIGURES Chapter INTRODUCTION 1.1 Research background 1.2 Problem statement 1.3 Research objectives 1.4 Research questions 1.5 Significance of research Chapter LITERATURE REVIEW 2.1 Customer centric marketing 2.2 Employee job satisfaction 10 2.3 Customer orientation 12 2.4 Customer relationship marketing activities 14 2.5 Sales performances 17 2.6 Theoretical model and hypothesis 18 2.6.1 Theoretical model 18 2.6.2 Employee job satisfaction and sales performances 20 2.6.3 Employee job satisfaction, customer orientation and sales performance 21 2.6.4 Employee job satisfaction, customer marketing relationship activities and sales performance 24 Chapter Research methodology 27 3.1 Research process 27 3.2 Quantitative research 29 3.2.1 Research sampling method 29 3.2.2 Measurement scales 30 3.3 Pilot study 32 3.4 Main survey 33 Chapter Result 35 4.1 Demographics profile of respondents 35 4.2 Measurement model 36 4.2.1 Indicator reliability 36 4.2.2 Internal consistency reliability 38 4.2.3 Construct validity 40 4.2.3.1 Convergent validity 40 4.2.3.2 Discriminant validity 42 4.3 Structural model 43 4.3.1 Result of model 43 4.3.2 Result of model 44 4.4 Result of control variables 48 Chapter Discussion, implications and limitations 51 5.1 Conclusion 51 5.2 Discussion and implications 52 5.3 Limitation and direction for future research 53 References 54 -iiiLIST OF FIGURES Figure Type of logistics Figure Theoretical model 19 Figure Research process 28 Figure Model 1–the path coefficient 44 Figure Path coefficient – Model 46 -iiiLIST OF TABLE Table 3-1a Scale of Employee Job Satisfaction 30 Table 3-1b Scale of Customer Orientation 31 Table 3-1c Scale of Relationship marketing activities 31 Table 3-1d Scale of Sales performance 31 Table 3-2 Item-Total Statistics of pilot study 32 Table 4-1 Distribution of the sample – sales person 36 Table 4-2 Distribution of the sample – company 36 Table 4-3 Factor loading of Model 37 Table 4-4 Factor loading of Model 37 Table 4-5 Composite reliability of model 38 Table 4-6 Cronbach alpha of model 39 Table 4-7 Composite reliability of model 40 Table 4-8 Convergent validity of model 41 Table 4-9 Convergent validity of model 41 Table 4-10 Correlation matrix 42 Table 4-11 Fornell Larcker Criterion Analysis 43 Table 4-12 T-statistics of Path coefficient (Inner Model ) – Model 43 Table 4-13 T-statistics of Outer loadings – Model 44 Table 4-14 T-statistics of Path coefficient (Inner Model ) – Model 45 Table 4-15 R Square score 46 Table 4-16 T-statistics of Outer loadings – Model 47 Table 4-17 Test of Homogeneity of Variances 48 Table 4-18 Anova of control variables 48 -ivAPPENDIX Questionnaire for pilot study 64 Questionnaire for main survey 68 Chapter 1: INTRODUCTION 1.1 Research background Logistics defined as a part of Supply Chain Management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information to ship cargoes/shipment from the point of origin to the point of consumption (Supply Chain Management, n.d.) According to decree No.140/2007/ND-CP, the Vietnamese Government (2007) divided logistics by groups of services: - Transportation: airway, roadway, railway, shipping and pipeline - Forwarding: Container loading and unloading - Warehouse: Cold chain, bonded warehouse - Other value added service: customs clearance, packing – inspection – fumigation, IT management Figure Type of logistics Page | 5.2 Discussion and implications The purpose of this paper is demonstrating how employee job satisfaction affects sales performance The paper also explores some mediating factors (customer orientation and relationship marketing activities) affect sales performance in logistics companies in Vietnam Through this thesis, logistics manager can understand more about characteristics of human in logistics area, they can make decision about HR strategy and benefits to improve both sales performances and the organizational performance The result indicates that demographics (age, education, gender, salary) are not significant to sales performance Managers not need to take care of about age, education, gender and salary of employees Besides that, readers can see that what kind of services, what kind of customer, how many employees and how many business years of company are not significant to sales performance Manager can recruit male or female, bachelor or master, younger or older, low salary or high salary They will have the same performance in sales A deeper exploration shows that employee job satisfaction affect sales performance positive Job satisfaction also influence to customer orientation, relationship marketing and both sales performance positive So logistics company should focus on increasing satisfy of employee Customer orientation and relationship marketing activities also affect sales performance positive But customer orientation has a higher affect to sales performance than relationship marketing activities, so logistics company pay more attention to training and improve sales person about customer orientation (finding out the solution to solve problem and save cost to customers, etc…) It will be more effective than increasing relationship with customers However, adding both customer orientation and relationship marketing activities, relationship between job satisfaction and sales performance will be negative It means managers also have to pay attention highly to employee who have high performance in Page | 52 logistics area When employees have a higher performance, they will have a difference reaction with new coming period Otherwise, this study shows that satisfy of job affects to job satisfaction highest The impact of building and maintaining relationship with customer on relationship marketing activities is the most The impact of taking problem solving approach in selling products/services to customer on customer orientation is the most The impact of firm’s share of business with buyer on sales performance is the most From these findings, manager can focus on these items to improve performance of sales person 5.3 Limitations and directions for future research This study has some limitations Firstly, because of the limit time, this research only conducts on a small size of population which placed at Ho Chi Minh City and Hanoi City Therefore, to generalize the results for a larger group, the future study should have involved more companies in difference cities in Vietnam Secondly, in this research, significant level of gender and salary are also low, so significant is not clearly This is not a highly evidences In addition, according to Mora and Ferrer (2009) researches on 5287 graduates of 12 recognized universities in Catalonia, Spain and found that women are statistically less satisfied than men for three out of five job satisfaction domain (promotion possibilities, earnings, and job security) Hence, future research can focus on demographics as gender and salary Thirdly, although the questionnaires in this study showed adequate reliability, some of the questionnaires showed lower reliability (e.g., the RMA4, CO4) than other questionnaires Among other difficulties (e.g., lower validity), lower reliability of a measure may hinders detection of the expected effects Future research may consider the development of more reliable measures for examining such constructs Finally, the present study did not examine perceptions of how long is relationship between sales person and customers The development of such a measure may lead to difference result in the future Page | 53 References Ahmad, R., Ing, H E., & Bujang, S (2014) Relationship between selected factors of job satisfaction and job performance among workers at palm oil industries International Review of Management and Business Research, 3(3), 1751-1766 Amstrong (2015) Amstrong’s handbook of performance management: performance management defined Anderson, E W & Oliver, R L (1987) Perspectives on behavior based versus outcome based sales force Control Systems 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University of Economics in HCMC The purpose of this survey is researching about CUSTOMER CENTRIC RELATIONSHIP MARKETING: EMPERICAL EVIDENCE FROM LOGISTICS SECTOR IN VIETNAM We hope that you will spend your valuable time to help us finish this survey If you would like to know the result of this research, please kindly advise and we will forward the result to you for reference Hope this thesis helps you have the other point of view to get the best strategy for your company THÔNG TIN CÁ NHÂN Gender (Giới tính) Male Female Age (Tuổi) 18-25 25-35 >35 Education (Trình độ học vấn) Trung học Đại học Sau đại học Salary (Mức lương) 30 triệu Our firm serves (Công ty phục vụ) Import/Export Shipment (Hàng hóa XNK) Domestics Shipment (Hàng hóa nội địa) Both of above (Cả hai) Our customers are (Khách hàng là) Forwarding Companies (Công ty dịch vụ XNK) Direct Customers (Công ty sản xuất) Both of above (Cả hai) Our firm has been in business for years (Công ty hoạt động … năm) Under years (Dưới năm) 5-10 years (5-10 năm) > 10 years (Trên 10 năm) Our firm has …… employees (Công ty có … nhân viên) Under 10 employees (Dưới 10 Nhân viên) 10-40employees (10-40 Nhân viên) >40 employees (>40 Nhân viên) KHẢO SÁT VỀ MỐI QUAN HỆ VỚI KHÁCH HÀNG - Totally disagree - Disagree - Slightly disagree - Neutral - Slightly agree - Agree - Totally agree 1- Rất không đồng ý 2- Không đồng ý 3- Hơi không đồng ý 4- Bình thường 5- Hơi đồng ý 6- Đồng ý 7- Rất đồng ý Nội dung câu hỏi I am generally satisfied with the kind of work I in this job (Tôi thấy hài lòng với loại hình công việc mà làm) Generally speaking, I am very satisfied with this job (Tôi thấy hài lòng với công việc tại) I never think of quitting this job (Tôi chưa có ý định nghỉ việc) I try to figure out what the customer’s needs are (Tôi cố gắng tìm hiểu nhu cầu khách hàng) I have the customer’s best interests in mind (Tôi suy nghĩ lợi ích khách hàng) I take a problem solving approach in selling products or services to the customer (Tôi sử dụng phương pháp tiếp cận đưa giải pháp để bán sản phẩm dịch vụ cho khách hàng) I recommend products or services that are best suited to solving problems (Tôi đưa sản phẩm dịch vụ phù hợp để giải vấn đề khách hàng) I work hard to strengthen this buyer’s relationship with me (Tôi làm việc chăm nhằm thắt chặt mối quan hệ thân thiết với khách hàng mình) I focus attention on building and maintaining my relationship with this buyer (Tôi tập trung vào việc xây dựng trì mối quan hệ với khách hàng mình) I make significant investments in building a strong relationship with this buyer (Tôi trọng đầu tư nhiều vào việc xây dựng mối quan hệ thân thiết với khách hàng mình) I devote considerable time and effort to my relationship with this buyer (Tôi dành nhiều thời gian nỗ lực cho mối quan hệ với khách hàng mình) My firm’s share of business with this buyer is expanding (Tỷ trọng khách hàng tổng doanh số công ty tăng lên) The number of different products this customer purchased from my company increased last year (Số lượng sản phẩm dịch vụ mà khách hàng sử dụng từ công ty tăng hơn) I am meeting my sales goals with this customer (Tôi đạt mục tiêu doanh số đề cho khách hàng này) The sales to this customer are growing faster than the overall sales of my company (Doanh thu từ khách hàng tăng nhanh so với tỷ lệ tăng doanh thu công ty tôi) The competition in business is high (Công ty đối mặt với nhiều cạnh tranh kinh doanh) Our competitors always try to improve their services (Các đối thủ cạnh tranh công ty cố gắng nâng cao dịch vụ khách hàng họ) Customer's requirement in logistics area always change (Sự mong đợi khách hàng ngành vận chuyển hàng hoá thay đổi) Everything changes quickly in logistics area (Mọi thứ thay đổi nhanh chóng ngành vận chuyển hàng hoá) Tôi muốn tham khảo kết khảo sát Vui lòng gửi qua email: Many thanks for your kind support! Chân thành cám ơn giúp đỡ chia sẻ bạn! …………………………………… ... MINH CITY International School of Business - Nguyen Thi Hoang Linh CUSTOMER CENTRIC MARKETING: EMPIRICAL EVIDENCE FROM LOGISTICS SECTOR IN VIETNAM ID: 22120093 MASTER OF BUSINESS... relationship marketing becomes the fourth significant post-war wave in marketing Customer relationship marketing is the process of identifying, developing, maintaining and terminating relational... waves in marketing since World War II such as: mass marketing, targeted marketing and global marketing These three first waves focused on maximizing sales But marketers are now discovering that