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VIETNAM NATIONAL UNIVERSITY, HANOI SCHOOL OF BUSINESS Doan Thi Huong Giang INFLUENCED FACTORS ON HANOI CONSUMER’S SATISFACTION FOR FOOD SAFETY AND HYGIENE MASTER OF BUSINESS ADMINISTRATION THESIS Hanoi – 2010 VIETNAM NATIONAL UNIVERSITY, HANOI SCHOOL OF BUSINESS Doan Thi Huong Giang INFLUENCED FACTORS ON HANOI CONSUMER’S SATISFACTION FOR FOOD SAFETY AND HYGIENE Major: Business Administration Code: 60 34 05 MASTER OF BUSINESS ADMINISTRATION THESIS Supervisors: Dr Pham Quy Long Dr Nguyen Thi Phi Nga Hanoi – 2010 TABLE OF CONTENTS ACKNOWLEDGEMENTS i ABSTRACT ii TÓM TẮT iv TABLE OF CONTENTS vi LIST OF FIGURES viii LIST OF TABLES ix Introduction 1 Necessity of the research Research Objectives Research questions Scope of the research Research methodology Limitations Contributions of the research Expected results Suggestions for future research 10 Research structure Chapter 1: Literature Review 1.1 Consumer’s satisfaction definition 1.2 Theories of consumer’s satisfaction interpretations 1.2.1 Psychological interpretation 10 1.2.2 Economic interpretations 16 1.2.3 Sociological interpretation 22 1.3 Discussion of related research 25 Chapter 2: Research model and Hypothesis 30 2.1 Research model 30 2.2 Description of factors in the model 32 2.2.1 Media 32 2.2.2 Product’s quality 35 2.2.3 Product’s price 38 vi 2.2.4 Product’s label 42 2.2.5 Compliance level of food safety and hygiene 44 2.3 Hypothesis of correlation among factors 45 Chapter 3: Research Methodology 48 3.1 Research purpose 48 3.2 Research approach 51 3.3 Measurement index of factors 52 3.4 Sample selection 55 3.5 Data collection 57 3.6 Data analysis 59 3.6.1 Validity 59 3.6.2 Reliability 60 Chapter 4: Data presentation and results 62 4.1 Data presentation 62 4.2 Some results 76 4.2.1 The most important factors of Hanoi consumer’s satisfaction regarding food safety and hygiene 76 4.2.2 Consumer’s satisfaction regarding food safety and hygiene by influenced factors 79 4.2.3 Hypothesis tested 81 CONCLUSION 85 REFERENCES 87 APPENDICES 101 Appendix A: Survey questionnaire for Chinsu sauce product 101 Appendix B: Survey questionnaire for Dr Thanh product 104 vii LIST OF FIGURES Figure 1.1: Loyalty in different situation of satisfaction and attitude Figure 1.2: Interpretations of consumer’s satisfaction/dissatisfaction 12 Figure 1.3: Consumer surplus 18 Figure 1.4: Hypothetical utility curves 21 Figure 1.5: Classification of consumer satisfaction/dissatisfaction research 26 Figure 2.1: The structural model of influenced factors on consumer’s satisfaction on food safety and hygiene 32 Figure 2.2: Pricing strategies matrix 39 Figure 4.1: Gender in Dr Thanh and Chinsu sauce survey samples 63 Figure 4.2: Frequency of using products in the recent two surveys 67 Figure 4.3: Willingness to introduce products to others 68 Figure 4.4: Satisfaction level of respondents with Chinsu sauce product 72 Figure 4.5: Satisfaction level of respondents with Dr Thanh product 76 Figure 4.6: The importance of influenced factors in Dr Thanh survey 77 Figure 4.7: The importance of influenced factors in Chinsu survey 78 Figure 4.8: Respondents' satisfaction regarding food safety and hygiene by influenced factors in Dr Thanh survey 80 Figure 4.9: Respondents' satisfaction regarding food safety and hygiene by influenced factors in Chinsu survey 81 viii LIST OF TABLES Table 3.1: Assessing the importance of influenced factors of consumer’s satisfaction 53 Table 3.2: Assessing the satisfaction level of consumer’s satisfaction regarding food safety and hygiene 54 Table 4.1: Age category in the two surveys 64 Table 4.2: Job positions of the samples in the two surveys 65 Table 4.3: Monthly income of the samples in the two surveys 65 Table 4.4: How long the respondents have used products in the two surveys 66 Table 4.5: Media factor in Chinsu survey 69 Table 4.6: Quality factor in Chinsu survey 70 Table 4.7: Price factor in Chinsu survey 70 Table 4.8: Label factor in Chinsu survey 71 Table 4.9: Label factor in Chinsu survey 71 Table 4.10: Media factor in Dr Thanh survey 73 Table 4.11: Quality factor in Dr Thanh survey 73 Table 4.12: Price factor in Dr Thanh survey 74 Table 4.13: Label factor in Dr Thanh survey 74 Table 4.14: Label factor in Dr Thanh survey 75 Table 4.15: Significance of influenced factors in Chinsu survey 82 Table 4.16: Significance of influenced factors in Dr Thanh survey 83 ix Introduction Necessity of the research With annual growth rate of 1.2%, Hanoi population reaches approximately 6.7 million people in 2010, the demand for food is increasing more than ever before despite the fact that land for agriculture is getting smaller due to urbanization Therefore, food consumption situation becomes more complex and hard to control Nowadays, many cases of un-safety and in-hygiene food have been revealed and punished by food management authorities including Ministry of Health, Ministry of Industry and Trade and Ministry of Agriculture and Rural development As the result, Hanoi consumer’s satisfaction has been affected and their confidence in food safety and hygiene has been being lost However, there are still some foods brands that take care of consumers’ health and commit to provide only safe and qualified products would be awarded consumers’ trust In such context, I decide to choose the topic: “Influenced factors on Hanoi consumer’s satisfaction for food safety and hygiene”, to identify key factors influencing consumer’s satisfaction and to propose solutions for marketers in enhancing Hanoi consumer’s satisfaction with food industry Research Objectives Study definition and theory of consumer’s satisfaction Study factors influencing consumer’s satisfaction in Hanoi regarding food safety and hygiene Propose some solutions for enhancing Hanoi consumer’s satisfaction regarding food safety and hygiene Research questions In order to achieve the objectives of the thesis, the author of thesis will try to answer the following questions: What is definition of consumer’s satisfaction? What are theories of consumer’s satisfaction? What is research model for the thesis? Which influenced factors are selected for the research model? Which research methodology is applied for the thesis? Which products are selected as sample for the research? What are solutions for enhancing Hanoi consumer’s satisfaction regarding food safety and hygiene? Scope of the research This thesis focuses on the most influenced factors on Hanoi consumer’s satisfaction for food safety and hygiene For food safety and hygiene issue, food is a broad term which can be classified into import foods and domestic food; fresh food and processed food; etc In scope of this thesis, the author selects two domestic products as research objects in stead of food in general They are fish sauce Chinsu and herbal tea Dr Thanh The research is conducted in Hanoi area, which targets to those who often buy food They are officers, housewives, students, etc Thereby, the solutions for enhancing Hanoi consumer’s satisfaction regarding food safety and hygiene will be proposed, based on the research conduction and analysis Research methodology Thesis is used methodology of researching the secondary data, primary data; conducting qualitative (by interviewing respondents in Hanoi ) and quantitative by survey regarding their opinions about factors affecting their satisfaction for food safety and hygiene, focusing two selected products as research objects Limitations The first limit of this thesis is the scope of work, which focuses on only two products, not covering all kind of foods in the market The second one is the research methodology using quantitative by survey, with limited observations in the sample Due to limited time and budget, the author only conduct the survey in small scale of approximately 200 observations each survey, which target to sample of officers, students, housewives, etc 189 respondents joined Dr Thanh survey and 198 respondents joined Chinsu sauce survey Therefore, the result will be relatively precisely estimated Contributions of the research This thesis presents the updated theory of consumer’s satisfaction This theory is good references for researchers, marketers, and leaders for their business On the practice side, some influencing factors on Hanoi consumer’s satisfaction their impacts to consumer’s satisfaction regarding food safety and hygiene will be discovered as a good source for marketers and leaders in order to accelerate consumer’s satisfaction regarding food safety and hygiene Expected results The study expects to show the following findings: Bring systematic knowledge and theory of consumer’s satisfaction Provide a thorough analysis the research result through qualitative and quantitative methodology conducted for two selected products in Hanoi regarding on food safety and hygiene Propose the lessons for marketers in enhancing Hanoi consumer’s satisfaction regarding food safety and hygiene Suggestions for future research Further study can also be carried out to consumer’s satisfaction on food safety and hygiene in Vietnam with variety of products will be chosen for the research objects 10 Research structure In chapter the nature of consumer’s satisfaction/dissatisfaction is first explored The literature dealing with the conceptualization of consumer’s satisfaction/dissatisfaction is surveyed, followed by a discussion of research investigating factors influencing consumer’s satisfaction/dissatisfaction Based on the survey of the literature on consumer’s satisfaction/dissatisfaction, a structural model of consumer’s satisfaction and Day (ed.), Consumer Satisfaction, Dissatisfaction, and Complaint Behavior Blooming: Indiana University, pp.10-17 90.Thompson J.R (1972), 'Consumers' Complaints and Cognition' Paper Presented at the Southwestern Social Science Association, San Antonia, Texas, March 91.Triandis, H.C (1971), Attitude and Attitude Change New York: John Wiley & Sons 92.Tse, K.C (1980), 'Directions and Opportunities of Consumer Satisfaction/ Dissatisfaction' Unpublished working paper 93.Vinson, D E and Nakanishi, M (1976), 'The Structural Composition of Consumer Value- attitude System' Working Paper College of Business, University of Southern California 94.Vinson, D.E and Gutman, J (1978),'Personal Values and Consumer Discontent', AIDS Proceedings, 2, America Institute of Decision Sciences, pp 201-3 95.Vinson, D.E (1977), 'Personal Values as a Dimensional of Consumer Content', in B Greenberg and D Bellenger (eds), Contemporary Marketing Thought Chicago: American Marketing Association, p.505 96.Vinson, D.E , Scott, J.E and Lamont L.M (1977), 'The Role of Personal Values In Marketing and Consumer Behavior', Journal of Marketing, pp (April), pp 44-59 97.Vinson, D.E and Yang, C.F (1979), 'Personal Values and Consumer Discontent' Unpublished working paper The University of Southern California 98 98.Wall, W.M., Dickey, L.E and Talarzyk, W.W (1977), 'Predicting and Profiling Consumer Satisfaction and Propensity to Complain', in Ralph, L Day (ed.), Consumer Satisfaction, Dissatisfaction and Consumer Complaining, Bloomington: Indiana University, pp 91-101 99.Wall, W.M., Dickey, L.E and Talarzyk, W.W (1978), 'Correlates of Satisfaction and Dissatisfaction with Clothing Performance', Journal of Consumer Affairs, (summer), pp 104-15 100 Warland, R.H., Hermann, R.O and Willits, J (1977), 'Dissatisfied Consumers: Who gets Upset and Who takes Action', Journal of Consumer Affairs, (fall), pp 152-62 101 Westbrook, R.A (1980c), 'Pre-purchase, Information Search and Post-purchase Product Satisfaction', in H Keith Hunts and Ralph L Day (eds), Refining Concepts and Measures of Consumer Satisfaction and Complaining Behavior Blooming: Indiana University 102 Wonnacott, R.J and Wonnacott T.H (1978), Economics, New York : John Wiley & Sons 103 Zaichkowsky, J and Liefeld, J (1977), 'Personality Profiles of Consumer Complaint Letter Writers'in H Keith Hunts and Ralph L Day (eds), Consumer Satisfaction, Dissatisfaction and Consumer Behavior Bloomington: Indiana University pp 124-9 104 Zinkhan, G.M and Wallendorf, M (1982), 'A Product Set Approach to Consumer Satisfaction/Dissatisfaction', in H Keith Hunts and Ralph L Day (eds), New Findings on Consumer Satisfaction and Complaining Behavior Blooming: Indiana University, pp 33-9 Websites: 99 o www.answers.com o www.entrepreneur.com o www.wikipedia.org 100 APPENDICES Appendix A: Survey questionnaire for Chinsu sauce product Khảo sát yếu tố ảnh hưởng đến hài lòng người tiêu dùng Hà Nội vấn đề vệ sinh an toàn thực phẩm A NỘI DUNG BẢN CÂU HỎI VỀ SẢN PHẨM NƯỚC MẮM CHINSU Anh/Chị nghe nói đến nước mắm Chin su chưa? □1 Chưa nghe Anh/Chị dùng nước mắm Chinsu chưa? □1 Chưa Nếu dùng rồi, anh/chị sử dụng sản phẩm rồi? □1 Dưới tháng Anh/chị có dùng nước mắm Chinsu thường xuyên khơng? □1 Hằng ngày Liệu anh/chị có sẵn sàng giới thiệu sản phẩm với bạn bè, người thân không? □1 Chắc chắn Anh/chị đánh giá mức độ quan trọng yếu tố sau đến vấn đề vệ sinh an toàn thực phẩm sản phẩm nước mắm Chinsu (mức thang đo điểm) TT 1.a 1.b Các yếu tố Sản phẩm truyền thông rộng khắp nhiều phương tiện đại chúng Các thông điệp truyền thông rõ ràng phù hợp Sản phẩm có chất lượng tốt 101 4.a 4.b 4.c 5.a 5.b Mức giá cạnh tranh Thông tin nhãn hiệu đầy đủ đáng tin cậy Hình ảnh nhãn hiệu thống rõ ràng Nhãn hiệu nhiều người biết đến Sản phẩm tuân thủ chặt chẽ quy định Vệ sinh an toàn thực phẩm (VSATTP) Nhà sản xuất có nhiều chứng nhận VSATTP Mức độ hài lòng anh/chị yếu tố sau đến vấn đề vệ sinh an toàn thực phẩm sản phẩm nước mắm Chinsu (mức thang đo điểm) TT 1.a 1.b Các yếu tố Sản thông rộng khắp nhiều phương tiện đại chúng p Các th thông rõ ràng phù hợp Sản phẩm có chất lượng tốt Mức giá cạnh tranh 4.a Thông tin nhãn hiệu đầy đủ đáng tin cậy Hình 4.b rõ ràng 4.c Nhãn người biết đến 102 Sản phẩm tuân thủ chặt chẽ quy định Vệ sinh an toàn thực phẩm (VSATTP) 5.a Nhà sản xuất có nhiều 5.b chứng nhận VSATTP Vậy nhìn chung, anh/chị có hài lịng với sản phẩm nước mắm Chinsu khơng? □1 Rất hài lịng B THƠNG TIN CÁ NHÂN Anh/chị sống địa bàn (quận/huyện nào) Hà Nội? □1 ……………………………… 10 Anh/chị là? □1 Nam 11 Anh/chị thuộc độ tuổi sau đây? □1 Dưới 18 □5 41-50 12 Vị trí cơng việc sau gần với công việc anh/chị? □1 Giám đốc/Trưởng phòng □5 Sinh viên 13 Anh/chị vui lòng cho biết mức thu nhập hàng tháng anh/chị khoảng sau đây? □1