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Nowadays, the restaurant business in Vietnam has shown dramatically growth, driven by not only famous foreign brands, but also local brands. In the last decade, Vietnamese people have invested heavily in the market and are predicted to continue to do so, mainly driven by increased spending, rapid urbanization and growth of the middle-class population. According to Decision Lab (a market research firm that based in Ho Chi Minh City), the out-of-home consumption for F&B, are divided into a number of segments, of which full-service restaurants and quick service restaurants lead the group at 36%. Local brands offering Vietnamese cuisine are also a tough competitor to the global food chain. In recent years, foreign fast food chains have underperformed and slowed down expansion plans due to the consumer preferring the local dishes and affordable prices. La Vong is one of the biggest Vietnamese restaurant chains. In 2013, the company simultaneously opened its chain of 7 restaurants in Hanoi and since then it has become a famous destination for eating out and party catering services. With relentless efforts, La Vong has achieved remarkable results in terms of revenues. Specifically, the total revenues in 2014, 2015, 2016, 2017 were VND 16.8 billion, VND 17.4 billion, VND 15.1 billion and VND 18.3 billion respectively. In this situation of restaurant business in Vietnam, the author identified several rationales for conducting the thesis as below: Firstly, the author has responsibility as F&B Marketing Manager of La Vong Group. So, a thorough understanding of factors that have significant impact on customer satisfaction is very useful in guiding manager to design strategies and deliver the right offering. Secondly, La Vong has not officially conducted customer satisfaction research. Understanding the role of customer satisfaction and its impact on customer loyalty, the company shall have evidences that help make right decisions to increase the market share of La Vong in the F&B industry. Thirdly, though best known for its good dishes, it can be a struggle for La Vong to attract value-seeking customers whenever a new restaurant opens in the vicinity. Because people like new things and restaurants are no exception. The restaurant business is highly competitive. New competitors enter the market fairly regularly to steal existing establishment’s clients. Therefore, managers need to find appropriate marketing plan to increase customer satisfaction, build customer loyalty and adopt strategies to beat the restaurant competition without lowering profits.

NATIONAL ECONOMICS UNIVERSITY NEU BUSINESS SCHOOL NGUYEN THI BICH NGOC FACTORS IMPACTING ON CUSTOMER SATISFACTION TOWARDS LA VONG’S RESTAURANT CHAIN MASTER OF BUSINESS ADMINISTRATION THESIS SUPERVISOR: ASSOC.PROF.DR TRAN THI VAN HOA HANOI - 2018 ACKNOWLEDGEMENT I cannot accomplish this thesis without valuable supports of my supervisor, customers and managers of La Vong restaurant chain First, I would like to send my grateful expression and sincere thanks to my supervisor – Assoc Prof Dr Tran Thi Van Hoa, who is very patient and supportive while I am completing the thesis by giving me a lot of guidance and contributive comments Second, I would love to express my warm thanks to customers and managers of La Vong restaurant chain, who spent their value time on discussing with me and providing me a lot of useful information Third, I want to spend my thanks and gratitude to my family who supported me a lot during my master course TABLES OF CONTENTS ACKNOWLEDGEMENT .i TABLES OF CONTENTS ii ABBREVIATION iv LIST OF TABLES v LIST OF FIGURES vi EXECUTIVE SUMMARY CHAPTER 1: INTRODUCTION 1.1 Rationale 1.2 Research objectives 1.3 Research questions 1.4 Scope of the thesis 1.5 Research methodology .5 1.5.1 Research process 1.5.2 Data collection 1.5.3 Data analysis techniques 1.6 Structure of the thesis .7 CHAPTER 2: THEORETICAL BACKGROUND ON CUSTOMER SATISFACTION .8 2.1 Nature of customer satisfaction 2.2 Models to analyze factors impacting customer satisfaction 2.3 Factors impacting customer satisfaction in La Vong’s restaurant chain 14 2.3.1 Location (Transportation/accessibility) 14 2.3.2 Employees’ behaviors 15 2.3.3 Product quality .16 2.3.4 Restaurant’s decoration 17 2.3.5 Price .20 CHAPTER ANALYZING FACTORS IMPACTING ON CUSTOMER SATISFACTION TOWARDS LA VONG’S RESTAURANT CHAIN .23 3.1 Overview of restaurant business and restaurant business in Vietnam .23 3.2 Overview of La Vong Group 27 3.2.1 Introduction of La Vong Group .27 3.2.2 Development of La Vong Group 30 3.3 Analyzing factors impacting on customer satisfaction towards La Vong’s restaurant chain 32 3.3.1 Demographic data of the respondents 32 3.3.2 Data testing 36 3.3.3 Analyzing customer satisfaction at La Vong’s restaurant chain 38 3.3.4 Relationship between 05 dimensions with La Vong’s restaurant chain 47 3.4 General assessment about satisfaction and dissatisfaction factors 49 CHAPTER 4: RECOMMENDATION TO IMPROVE CUSTOMER SATISFACTION 52 CONCLUSION 56 REFERENCES APPENDIX 1: SURVEY OF QUESTIONAIRE APPENDIX 2: RESEARCH RESULTS ABBREVIATION CRM EB EFA F&B FQ KMO L P RD VND VNDm Customer Relationship Management Employee’s behavior Exploratory factor analysis Food and Beverage Service Food quality Kaiser-Meyer-Olkin Location Price Restaurant decoration Vietnam Dong Vietnam Dong million LIST OF TABLES Table 3.1: Business performance of La Vong 2014 – 2017 31 Table 3.2: Gender description 32 Table 2.3: Age description .33 Table 3.4: Monthly income description 33 Table 3.5: Level of education description 34 Table 3.6: Frequency of dinning out description 35 Table 3.7: Reason of dinning out description 35 Table 3.8: KMO and Bartlett's Test 36 Table 3.9: EFA for all dimensiosn 37 Table 3.10: EFA for each dimension 37 Table 3.11: Respondents’ assessment towards food quality of La Vong’s restaurant chain 38 Table 3.12: Respondents’ assessment towards employee’s behavior of La Vong’s restaurant chain 40 Table 3.13: Respondents’ assessment towards resraurant decoration of La Vong’s restaurant chain 42 Table 3.14 Respondents’ assessment towards location of La Vong’s restaurant chain 45 Table 3.15: Respondents’ assessment towards price of La Vong’s restaurant chain.46 Table 3.16: Relationship amongst dimensions .48 LIST OF FIGURES Figure 1.1: Research process Figure 2.1: Conceptual research model to measure customer satisfaction in La Vong’s restaurant chain 14 Figure 3.1: Reason for dining-out in Vietnam .26 EXECUTIVE SUMMARY Nowadays, restaurants are cropping up like swarms of locusts everywhere, and the number of establishments is growing rapidly over the years The impact of globalization leads to the increase in number of tourists and expatriates, and restaurants have become a popular destination for dining as well as discussing business However, the restaurant industry is becoming highly competitive Therefore, the author decided to choose topic “Factors impacting on customer satisfaction towards La Vong’s restaurant chain” for research in this thesis The purpose of conducting this research is to achieve objectives: (1) to find out the factors impacting on customer satisfaction towards La Vong’s restaurant chain; (2) to analyze the impacts of these factors on customer satisfaction; (3) to provide recommendations to improve customer satisfaction and revisit To obtain these objectives, the author used both quantitative, and qualitative methods In quantitative method, survey questionnaires were distributed to over 200 customers who used serviced at La Vong’s restaurants Through the survey, factors impacting customer’s satisfaction were identified In the qualitative method, in-depth interviews were conducted to better understand restaurants condition and customer insight After the research, some main findings were figured out: Target consumers are (1) female, (2) over 21 years old, (3) with salary over VND 10 millions/month, (4) have high level of education, (5) prefer eating-out because of entertainment or no need to cook, and (6) usually go out to eat one to three times per month Essential elements that make customers feel satisfied are: (1) The dishes are tasty and delicious (2) Staffs are kind, courteous (3) The location of restaurants offers easy access and convenient parking (4) The price is correct as announced, not higher than that offered by competitors and is more attractive because of added incentives However, there are some factors that customers have not satisfied, namely (1) Architecture is not unique and impressive (2) The food has not been presented well and the dishes have not been served hot in big party (3) In special holiday or crowded party, customers’ orders have not been processed quickly and error-free, and (4) The restaurant has not focused more on decorating and investing in the ambiance and decoration Based on these findings, author proposed relatived recommendations for La Vong to: (1) Improve restaurants design, (2) Keep food warm for big party, (3) Improve professional performance of staffs, and finally (4) Improving the ambiance of the restaurants The author sincerely hopes that the results of this research will help managers have better understanding of restaurant’s customers Furthermore, they can use this helpful information to adjust the business to fit customers’ needs more accurately CHAPTER 1: INTRODUCTION 1.1 Rationale Nowadays, the restaurant business in Vietnam has shown dramatically growth, driven by not only famous foreign brands, but also local brands In the last decade, Vietnamese people have invested heavily in the market and are predicted to continue to so, mainly driven by increased spending, rapid urbanization and growth of the middle-class population According to Decision Lab (a market research firm that based in Ho Chi Minh City), the out-of-home consumption for F&B, are divided into a number of segments, of which full-service restaurants and quick service restaurants lead the group at 36% Local brands offering Vietnamese cuisine are also a tough competitor to the global food chain In recent years, foreign fast food chains have underperformed and slowed down expansion plans due to the consumer preferring the local dishes and affordable prices La Vong is one of the biggest Vietnamese restaurant chains In 2013, the company simultaneously opened its chain of restaurants in Hanoi and since then it has become a famous destination for eating out and party catering services With relentless efforts, La Vong has achieved remarkable results in terms of revenues Specifically, the total revenues in 2014, 2015, 2016, 2017 were VND 16.8 billion, VND 17.4 billion, VND 15.1 billion and VND 18.3 billion respectively In this situation of restaurant business in Vietnam, the author identified several rationales for conducting the thesis as below: Firstly, the author has responsibility as F&B Marketing Manager of La Vong Group So, a thorough understanding of factors that have significant impact on customer satisfaction is very useful in guiding manager to design strategies and deliver the right offering Secondly, La Vong has not officially conducted customer satisfaction research Understanding the role of customer satisfaction and its impact on customer loyalty, the company shall have evidences that help make right decisions to increase the market share of La Vong in the F&B industry Thus, the author recommended that in the further studies or researches of customer satisfaction in La Vong’s restaurant chain in the future with different approaches, it should be conducted to provide customers with different views about La Vong’s restaurant chain In conclusion, the author would like to receive any comments and contributions from readers with the aim of that the author could learn and improve in the next studies REFERENCES Auty, S (1992), “Consumer choice and segmentation in the restaurant industry”, The Service Industries Journal, 12 (3), pp 324-339 Babakus, E and Boller, G.W (1992), “An empirical assessment of the SERVQUAL scale”, Journal of Business Research, 26(6), pp 253-68 Beristain, J J., & Zorrilla, P (2011), “The relationship between store image and store brand equity: A conceptual framework and evidence from hypermarkets”, Journal of Retailing and Consumer Services, 18(6), pp 562-574 Bitner, M., Booms, B and Tetreault, M (1990), “The Service Encounter: Diagnosing Favourable and Unfavourable Incidents”, Journal of Marketing, 54, pp 71-84 Brown, C S., & Sulzer-Azaroff, B (1994), “An assessment of the relationship 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Susanta, H and Nurseto, S (2014), “The effect of product design, price and location toward purchase decision”, Jurnal Ilmu Administrasi Bisnis, 3(4) 51 Susskind, A.M & Chan, E.K (2000), “How restaurant features affect check averages”, Cornell Hotel and Restaurant Administration Quarterly, 42(6), pp 56-63 52 Suwarman, U (2004), “Perilaku Konsumen Teori dan Penerapannya dalam Pemasaran”, Penerbit: PT Ghalia Indonesia, Bogor 53 Tsai, W.-C., & Huang, Y.-M (2002), “Mechanisms linking employee affective delivery and customer behavioral intentions”, Journal of Applied Psychology, 87, pp 1001-1008 54 Thorsten, H T., & Alexander, K (1997), “The impact of customer satisfaction and relationship quality on customer retention: A critical reassessment and model development”, Psychology & Marketing, 14(8), pp 737–764 55 Vangvanitchyakorn, T (2000), “A survey on consumer perception: Southeast Asian restaurants in Minneapolis, Minnesota”, Unpublished master's thesis, University of Wisconsin- Stout, Menomonie 56 Wakefield, K L., & Blodgett, J G (1994), “The importance of servicescapes in leisure service settings”, Journal of Services Marketing, 8(3), pp 66-76 57 Wall, E A., & Berry, L L (2007), “The Combined Effects of the Physical Environment and Employee behavior on Customer Perception of Restaurant Service Quality”, Cornell Hotel and Restaurant Administration Quarterly, 48(1), pp 59-69 58 Walter, U., & Edvardsson, B (2012), “The physical environment as a driver of customers’ service experiences at restaurants”, International Journal of Quality and Service Sciences, 4(2), pp 104-119 59 Zeithaml, Valarie A (1981), "How Consumer Evaluation Processes Differ between Goods and Services", Marketing of Services, J Donnelly and W George, eds., Chicago: American Marketing, 186-190 60 Zeithaml, V., & Bitner, M J (2003), “Services Marketing”, 3rd ed, McGraw-Hill Irwin, Boston, MA APPENDIX 1: SURVEY OF QUESTIONAIRE Dear Madam/Sir, We are conducting a research to clearly understand consumers’ feelings related to experiences in our restaurants The purpose of this research is “to analyze factors impacting on customer satisfaction toward La Vong’s restaurant chain” The result of this study would be beneficial for not only the researcher but also the management level of La Vong because such knowledge will help us to identify and satisfy customers' need and wants Any provided information will be kept as confidential Please take about minutes to complete this survey carefully Your cooperation and supports for this questionnaire are greatly appreciated Sincerely! Part 1: Demographic information Please answer following questions: What is your gender? o Male o Female What is your age? o Under 21 o From 21 to 30 o From 31 to 40 o Over 40 What is your monthly income? o Under VND million o From VND million to 15 million o Over VND 15 million What is your highest level of education? o Less than high school degree o High school degree o Bachelor's degree o Professional Master's Degrees How often you visit one of La Vong restaurants each month? o Rarely (0 – times) o Sometimes (2 – times) o Fairly occasionally (5-9 times) o Very occasionally (over 10 times) What is your reason for eating-out? o No need to cook o Entertainment o Business purpose o Special occasion Part 2: Assess factors influence Customer Satisfaction towards La Vong’s restaurants Rate the following variables by marking tick according to the satisfaction level (where is the highest and is the lowest): Strongly disagree Disagree Neutral Agree Strongly agree Questions FOOD QUALITY The dishes are served hot The quality of ingredients is excellent, very fresh The food is so presented The dishes are tasty and delicious Menu has a large variety of items to choose EMPLOYEE’S BEHAVIOUR Staffs are kind, courteous Staffs are helpful and good at handling problems Your orders were processed quickly and errorfree The staffs look professional at all times (their appearance and communication skills, such as: wearing proper uniform and spoke clearly) Questions RESTAURANT DECORATION Architecture is so unique and impressive The outside environment of the restaurant is kept clean The interior space of the restaurant is kept clean Interior layout creates intimate and comfortable eating spaces for customers Lightning design is reasonable, and gives pleasurable effects to the customer’s emotion Pleasant air creates fresh and comfortable environment surrounding restaurants (do not have experience with bad odour) Restaurants are kept away from disturbing noises LOCATION The location of restaurants offers easy access The location of restaurants offers convenient parking PRICE The price is correct as announced The price is not higher than that offered by competitors The price is more attractive because of added incentives (such as discount for group, or gift for regular customers ) Overall assessment on customer satisfaction towards La Vong restaurants Overall, I feel satisfied with my experiences in La Vong’s restaurants I would comment positively about La Vong’s Questions restaurants I would like to return in one of La Vong’s restaurants, and I decided that they are my top choice I would recommend La Vong’s restaurants to my acquaintances and friends THANK YOU FOR YOUR COOPERATION! APPENDIX 2: RESEARCH RESULTS Total Variance Explained in KMO analysis Total Variance Explained Extraction Sums of Squared Rotation Sums of Squared Loadings Loadings % of Cumulative % of % Initial Eigenvalues % of Cumulative Component Total Variance % Total Variance 4.464 21.259 21.259 4.464 21.259 21.259 4.436 21.125 21.125 3.357 15.988 37.246 3.357 15.988 37.246 3.330 15.857 36.982 2.995 14.264 51.510 2.995 14.264 51.510 2.845 13.549 50.531 2.086 9.933 61.443 2.086 9.933 61.443 2.257 10.750 61.281 1.657 7.889 69.332 1.657 7.889 69.332 1.691 8.051 69.332 730 3.477 72.809 611 2.909 75.719 592 2.820 78.539 543 2.584 81.123 10 475 2.262 83.385 11 454 2.161 85.546 12 401 1.910 87.456 13 389 1.851 89.307 14 367 1.747 91.055 15 348 1.656 92.711 16 326 1.551 94.261 17 286 1.361 95.623 18 253 1.207 96.829 19 246 1.170 97.999 20 226 1.076 99.075 21 194 925 100.000 Extraction Method: Principal Component Analysis Total Variance Cumulative % EFA analysis – tem total statistic Item-Total Statistics Scale Mean if Item Deleted Scale Variance if Corrected Item- Cronbach's Alpha Item Deleted Total Correlation if Item Deleted FQ1 12.330 17.006 721 810 FQ2 12.070 17.151 667 801 FQ3 12.460 16.672 704 806 FQ4 11.985 16.246 714 804 FQ5 12.115 17.258 649 809 EM1 8.835 9.475 665 801 EB2 8.980 9.537 735 811 EB3 9.325 9.316 734 810 EB4 9.250 9.535 700 810 RD1 17.885 36.836 693 811 RD2 17.520 34.331 759 807 RD3 17.530 34.934 745 809 RD4 17.730 35.957 726 801 RD5 17.810 35.672 776 807 RD6 17.700 34.925 651 811 RD7 17.545 35.455 613 806 L1 3.165 1.455 641 741 L2 3.135 1.424 641 723 P1 6.270 5.324 656 784 P2 6.290 4.609 701 737 P3 6.220 4.554 690 749 EFA of each dimention  Food quality Reliability Statistics Cronbach's Alpha N of Items 868  Employee’s behavior Reliability Statistics Cronbach's Alpha N of Items 861  Restaurant decoration Reliability Statistics Cronbach's Alpha N of Items 899  Location Reliability Statistics Cronbach's Alpha N of Items 781  Price Reliability Statistics Cronbach's Alpha 824 N of Items Rotated component matrix Rotated Component Matrixa Component RD5 RD2 RD3 RD4 RD1 RD6 RD7 FQ1 FQ4 FQ3 FQ2 FQ5 EB2 EB3 EB4 EB1 P2 P3 P1 L2 L1 846 834 821 804 776 753 715 825 820 818 790 784 860 854 833 806 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization a Rotation converged in iterations .874 853 840 905 889 Model summary Std Error of the Model R R Square Adjusted R Square Estimate a 897 758 736 357 a Predictors: (Constant), FOOD QUALITY, RESTAUTANT DECORATION, EMPLOYEE’S BEHAVIOR, PRICE & LOCATION Coefficients Coefficientsa Unstandardized Standardized Coefficients Coefficients Model B Std Error Beta (Constant) 1.498 482 RD_TB 823 068 072 FQ_TB 062 066 083 EB_TB 381 067 379 P_TB 030 064 032 L_TB 059 061 064 a Dependent Variable: CUSTOMER SATISFACTION t Sig 9.323 7.338 11.950 5.679 1.473 3.965 000 000 043 000 637 036

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14. Gagić, S. et.al (2013), “The vital components of restaurant quality that affect guest satisfaction”, TURIZAM, 17(4), pp. 166-176 Sách, tạp chí
Tiêu đề: The vital components of restaurant quality thataffect guest satisfaction”, "TURIZAM
Tác giả: Gagić, S. et.al
Năm: 2013
28. Lewis, R.C. (1981), "The marketing aspects of service quality", Emerging Perspectives on Services Marketing, American Marketing Association, Chicago, IL, pp. 99-107 Sách, tạp chí
Tiêu đề: The marketing aspects of service quality
Tác giả: Lewis, R.C
Năm: 1981
29. Lin, J. S. C., & Wu, C. Y (2011), “The role of expected future use in relationshipbased service retention”, Managing Service Quality, 21(5), pp. 535-551 Sách, tạp chí
Tiêu đề: The role of expected future use inrelationshipbased service retention”, "Managing Service Quality
Tác giả: Lin, J. S. C., & Wu, C. Y
Năm: 2011
30. Lynn (2001), “The effects of customer personality traits on display of positive emotions”, Academy of Management Journal, 47, pp. 287 - 296 Sách, tạp chí
Tiêu đề: The effects of customer personality traits on display ofpositive emotions”, "Academy of Management Journal
Tác giả: Lynn
Năm: 2001
32. Marija Pecotic, Vanda Bazdan, Jasminka Samardzija (2014), “Interior Design in Restaurants as a Factor Influencing Customer Satisfaction”, RIThink, 4 Sách, tạp chí
Tiêu đề: InteriorDesign in Restaurants as a Factor Influencing Customer Satisfaction”, "RIThink
Tác giả: Marija Pecotic, Vanda Bazdan, Jasminka Samardzija
Năm: 2014
33. Malik, E., & Ghaffor, M (2012), “Impact of brand image, service quality and price on customer satisfaction in Pakistan telecommunication sector”, International Journal of Business and Social Science, 3(2), pp. 123 Sách, tạp chí
Tiêu đề: Impact of brand image, service qualityand price on customer satisfaction in Pakistan telecommunication sector”,"International Journal of Business and Social Science
Tác giả: Malik, E., & Ghaffor, M
Năm: 2012
34. Mittal, B., & Walfried M. Lassar (1998), “Why do customers switch? The dynamics of satisfaction versus loyalty”, Journal of Services Marketing, 12(3), pp. 177- 194 Sách, tạp chí
Tiêu đề: Why do customers switch? Thedynamics of satisfaction versus loyalty”, "Journal of Services Marketing
Tác giả: Mittal, B., & Walfried M. Lassar
Năm: 1998
35. Namkung, Y., Jang, S., (2007), “Does food quality really matter in restaurant: its impact of customer satisfaction and behavioral intentions?”, Journal of Hospitality and Tourism Research, 31(3), pp. 387–410 Sách, tạp chí
Tiêu đề: Does food quality really matter inrestaurant: its impact of customer satisfaction and behavioral intentions?”, "Journalof Hospitality and Tourism Research
Tác giả: Namkung, Y., Jang, S
Năm: 2007
36. Nasir, A. et.al (2014), “Impact of different determinants on customer’s satisfaction level (A case of fast food restaurant)”, International Journal of Business and Management Invention, 3(9), pp. 32-40 Sách, tạp chí
Tiêu đề: Impact of different determinants on customer’ssatisfaction level (A case of fast food restaurant)”, "International Journal ofBusiness and Management Invention
Tác giả: Nasir, A. et.al
Năm: 2014
37. Neha Joshi (2012), “A Study on Customer Preference and Satisfaction towards Restaurant in Dehradun City”, Global Journals Inc, (USA) Online ISSN Sách, tạp chí
Tiêu đề: A Study on Customer Preference and Satisfactiontowards Restaurant in Dehradun City”, "Global Journals Inc
Tác giả: Neha Joshi
Năm: 2012
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Năm: 1993
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