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VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY PHAN BICH PHUONG TOWARD ENHANCING CUSTOMER CITIZENSHIP BEHAVIOR IN SERVICE INDUSTRY MASTER’S THESIS BUSINESS ADMINISTRATION Hanoi, 2020 VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY PHAN BICH PHUONG TOWARD ENHANCING CUSTOMER CITIZENSHIP BEHAVIOR IN SERVICE INDUSTRY MAJOR: BUSINESS ADMINISTRATION CODE: 8340101.1 RESEARCH SUPERVISORS: Professor TOHRU INOUE Dr TRAN THI BICH HANH Hanoi, 2020 CONTENT CHAPTER INTRODUCTION 1.1 Research motivation 1.2 Research objective 1.3 Research question 1.4 Research scope CHAPTER LITERATURE REIVEW 2.1 Customer citizenship behavior 2.1.1 Conceptual definition 2.1.2 Dimensions of customer citizenship behavior and related research 2.1.3 The research investigating the antecedents of customer citizenship behavior 2.2 Servicescape 11 2.2.1 affect S-O-R theory and influence of servicescape on customer’s positive 11 2.2.2 Physical servicescape and customer positive affect 12 2.2.3 Social servicescape and customer positive affect 14 2.2.4 Positive Affect and Customer citizenship behavior 16 2.3 Role theory and customer’s role readiness 17 2.3.1 The physical servicescape and customer role’s readiness 18 2.3.2 Employee’s characteristic and customer ‘s role readiness 19 2.3.3 Customer to customer know-how exchange and customer’ role readiness 20 2.3.4 2.4 Customer’s role readiness and customer citizenship behavior 20 Conceptual model 21 CHAPTER RESEARCH METHODOLOGY 22 3.1 Sampling 22 3.2 Data collection process 22 3.3 Questionnaire design 23 3.3.1 Demographic information 23 3.3.2 Questionnaire 23 I 3.4 Measurement scale 24 3.5 Data analysis procedure 29 3.5.1 Testing reliability – Validity of scale measurement 29 3.5.2 Exploratory Factor Analysis (EFA) 29 3.5.3 Regression analysis 30 CHAPTER DATA ANALYSIS AND RESULT 32 4.1 Data description 32 4.2 Reliability analysis 35 4.3 Exploratory Factor Analysis (EFA) 37 4.3.1 EFA for servicescape variables 37 4.3.2 EFA for positive affect variables 39 4.3.3 EFA for role readiness variables 40 4.3.4 EFA for customer citizenship behavior scale 41 4.4 Regression Analysis 42 4.4.1 Correlation analysis 42 CHAPTER RESULT AND DISCUSSION 46 5.1 Result discussion 46 5.1 Theoretical contribution 49 5.2 Managerial implication 51 5.3 Limitation and future research 53 II LIST OF FIGURES Figure 2-1 SOR model 11 Figure 2-2 Theoretical model 21 III LIST OF TABLES Table 3-1 Measurement scale development of physical servicescape 26 Table 3-2 Measurement scale development of social servicescape 27 Table 3-3 Measurement scale development of customer internal response 27 Table 3-4 Measurement scale development of customer citizenship behavior 28 Table 3-5 Likert scale 28 Table 4-1 Frequency statistic of demographic information 32 Table 4-2 Descriptive statistic 34 Table 4-3 Cronbach’s Alpha value 36 Table 4-4 Exploratory factor analysis result of independent variables 37 Table 4-5 Rotated components 38 Table 4-6 Exploratory factor analysis of positive affect 39 Table 4-7 Rotated component of positive affect scale 39 Table 4-8 Exploratory factor analysis of role readiness 40 Table 4-9 Rotated component of role readiness 40 Table 4-10 Exploratory factor analysis of customer citizenship behavior 41 Table 4-11 Rotated components of customer citizenship behavior scale 41 Table 4-12 Correlation analysis 42 Table 4-13 Multi collinearity coefficient diagnostic (VIF) 42 Table 4-14 Regression analysis 43 IV ACKNOWLEDGEMENT Conducting the dissertation study clearly consumed huge amount of time and effort and it would not be completed without the enthusiastic support and encouragement of individuals and organizations Firstly, I sincerely thank Vietnam Japan University, Yokohama National University, Japan International Cooperation Agency, Vietnam and Japan government for creating favorable conditions for us to gain academic knowledge in Vietnam Japan University and Yokohama National University I would like to say thanks to Prof Inoue and Dr Tran Thi Bich Hanh who not only gave us the directions in the academic research but also help us to have many memorable moments in life Besides, I would like to express my gratitude and appreciation to VNU, YNU support from Ms Huong, Dr Hino, Dr Lien Ms Sakakibara, Ms Mizuno, Ms Maeda as well as kind and warm friends in YNU who did help us and guide us during the MBA course I also send my sincere thanks to all the people who help me to complete the survey during the research process Last but not least, I would like to thank my team members of VJU - MBA 03 who always besides me and shared feelings and gave me precious life moments during the studying time in VJU In short, I really thank to all people related who spend time helping me to finish this dissertation V ABSTRACT The customer citizenship behavior is a quite new topic for both theoritical research and emperical research It is undeniable that, along with the development of service industry, it is more and more difficult for firm to enhance their competitive advantage In this fast moving society, customer is considered as the important source for company not only because of the benefit coming from their frequence of consumption but also from their contribution to organization as helping firm improve the service, increase firm’s reputation by their word of mouth, engage more new customers to use firm’s service by their recommendation, or by other their voluntary behaviors to help other customer discreationally To help firm to sustain their competitive advantage by enhancing customer citizenship behavior, the research explores which factors in servicescape have influence on customer citizenship behavior, and how this process is formed The research established theoretical model and empirical investigation under the foundation of SOR theory and Role theory to predict whether the servicescape pose influences on customer citizenship behavior or not The quantitative research used non-probability sampling and selfadministered questionnaire which adopted from previous relevant research toward 249 people in Vietnam After processing data by SPSS version 20th , the result shows that the servicescape including physical and social servicescape has positive impact on customer citizenship behavior through both positive affect and role readiness It is interesting that the employee’s characteristic has the biggest influence on both customer’s positive affect and role readiness which in turn influence citizenship behavior of customer The elements of physical servicescape the first time, shows the important role in the process of VI forming customer citizenship behavior The customer - customer knowhow exchange has shown the remarkable impact on customer role readiness in comparison of customer’s positive affect This research help manager to extent the knowledge and suggest some managerial practice for in service firm in terms of enhancing customer citizenship behavior in service industry VII CHAPTER INTRODUCTION 1.1 Research motivation Globalization entails profound changes in every facet of doing business of many firms in service industry (Yi & Gong, 2008) There are many business opportunities opening for service firms to improve their business as well as profit At the same time, many challenges have been raised in competition for service firm especially maintaining and enhancing competitive advantage in market In order to against those difficulties and find the directions to improve firm’s competitiveness service companies has transferred to concentrate on the role of consumer as a covalue creator In service context, customer ‘s role is considered as “partial employees” (Bowen & Schneider, 1985), role of customer could be classified in two mains types as in-role and extra role behavior (Bettencourt & Stephen, 1997) In-role behaviors is expressed through the participation of customer as arriving on time for appointment, provide necessary information for service facilitation, meanwhile, extra role consist of behaviors which takes customer’s time, effort, physical welfare, material possessions (Staub, 1978) And citizenship behavior is a type of customer’s extra role behavior which possibly poses the positive impact on service’s employee’s performance, service’s providers as well as other stakeholders not only inside but outside the service context Both in-role and extra role behaviors as customer participation and customer citizenship behaviors creates value for firm and become potential sources of competitive advantage (Paine & Organ, 2000) In fact, the nature of two behavior roles is not similar to each other The in-role behavior is performed when the customer shows their co-operation because of their outcome expectation Meanwhile the customer citizenship behavior’s nature emphasizes the voluntary and discretional action beyond their own responsibility in purchasing and consuming service which might helpful for organization In this recognition, there are remarkable amount of research in line of customer citizenship behavior as providing supportive Customer – Customer knowhow exchange scale (CE) Cronbach's Alpha ,923 N of Items Scale Mean if Item Deleted CE1 CE2 CE3 CE4 10,78 10,88 10,86 10,86 Scale Variance if Item Deleted 4,767 3,878 4,126 4,035 Corrected Item-Total Correlation ,730 ,886 ,832 ,848 Cronbach's Alpha if Item Deleted ,929 ,877 ,895 ,890 Positive affect scale Cronbach's Alpha ,931 N of Items Scale Mean if Item Deleted PA1 PA2 PA3 7,84 7,98 8,02 Scale Variance if Item Deleted 2,326 2,133 2,225 Corrected Item-Total Correlation ,832 ,885 ,857 Cronbach's Alpha if Item Deleted ,919 ,877 ,900 69 Role readiness scale (RR) Cronbach's Alpha ,909 N of Items Scale Mean if Item Deleted RR1 RR2 RR3 7,14 7,15 7,12 Scale Variance if Item Deleted 2,347 2,345 2,658 Corrected Item-Total Correlation ,862 ,862 ,735 Cronbach's Alpha if Item Deleted ,832 ,832 ,936 Customer citizenship behavior toward customer scale (CCBC) Cronbach's Alpha ,957 CCBC1 CCBC2 CCBC3 N of Items Scale Mean if Item Deleted 7,25 7,21 7,27 Scale Variance if Item Deleted 2,093 2,126 2,264 Corrected Item-Total Correlation ,931 ,925 ,874 Cronbach's Alpha if Item Deleted ,921 ,926 ,963 70 Customer citizenship behavior toward organization scale Cronbach's Alpha ,954 CBO1 CBO2 CBO3 N of Items Scale Mean if Item Deleted 7,44 7,44 7,44 Scale Variance if Item Deleted 3,529 3,425 3,506 Corrected Item-Total Correlation ,876 ,929 ,902 Cronbach's Alpha if Item Deleted ,952 ,912 ,932 71 II Exploratory factor analysis (EFA) EFA of servicescape variables KMO and Bartlett's Test KMO Measure of Sampling Adequacy Bartlett's Test of Sphericity Approx Chi-Square df Sig ,917 6450,10 231 ,000 Total variance explained Co mpo nent Initial Eigenvalues Total 11,157 2,291 50,713 10,414 2,157 % of CumuVariance lative % Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings Total % of Varianc e Cumu -lative % Total % of Variance Cumulatie % 50,713 61,128 11,157 2,291 50,713 10,414 50,713 61,128 5,987 4,345 27,215 19,748 27,215 46,963 9,803 70,931 2,157 9,803 70,931 3,273 14,876 61,840 1,756 7,982 78,912 1,756 7,982 78,912 2,649 12,039 73,878 1,403 6,378 85,290 1,403 6,378 85,290 2,511 11,412 85,290 ,457 2,075 87,365 ,395 1,798 89,163 ,375 1,703 90,866 10 ,286 ,234 1,302 1,061 92,169 93,230 11 12 ,205 ,199 ,930 ,904 94,160 95,064 13 14 15 ,174 ,171 ,146 ,792 ,775 ,664 95,855 96,631 97,295 16 ,125 ,569 97,864 17 ,120 ,546 98,410 18 19 ,104 ,078 ,473 ,354 98,883 99,236 20 ,070 ,319 99,556 21 ,061 ,275 22 ,037 ,169 99,831 100,00 72 Component matrix DS6 DS1 DS2 DS4 DS3 DS5 DS7 EE2 EE1 EE3 EE5 EE4 CE2 CE1 CE3 CE4 AC2 AC3 AC1 FE2 FE3 FE1 ,879 ,868 ,862 ,862 ,857 ,851 ,845 Component ,905 ,872 ,860 ,809 ,804 ,861 ,854 ,804 ,803 ,881 ,845 ,834 ,875 ,861 ,792 EFA of positive affect KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling ,756 Adequacy Approx Chi-Square 610,534 Bartlett's Test of df Sphericity Sig ,000 73 Total variance explained Initial Eigenvalues Component Total Extraction Sums of Squared Loadings Total % of Cumulati Variance ve % 2,635 87,820 87,820 % of Cumulative Variance % 2,635 87,820 87,820 ,223 7,423 95,243 ,143 4,757 100,000 Extraction Method: Principal Component Analysis Component matrix Component PA2 ,950 PA3 ,937 PA1 ,924 EFA of Role readiness KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling ,718 Adequacy Approx Chi-Square 557,983 Bartlett's Test of df Sphericity Sig ,000 Total Variance Explained Initial Eigenvalues Extraction Sums of Squared Component Loadings Total % of Cumulative Total % of Cumula Variance % Variance tive % 2,539 84,647 84,647 2,539 84,647 84,647 ,341 11,361 96,008 ,120 3,992 100,000 Extraction Method: Principal Component Analysis 74 Component Matrixa Component RR2 ,943 RR1 ,943 RR3 ,873 EFA of customer citizenship behavior KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity Approx Chi-Square df Sig ,822 1713,41 15 ,000 Total Variance Explained Com pone nt Initial Eigenvalues Total % of Cumulat Variance ive % 4,163 69,384 1,350 22,499 ,172 2,867 ,159 2,656 ,086 1,434 ,070 1,159 Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings Total Total % of Cumulat Variance ive % % of Cumulat Variance ive % 69,384 4,163 69,384 69,384 2,765 46,082 46,082 91,883 1,350 22,499 91,883 2,748 45,801 91,883 94,750 97,407 98,841 100,00 Extraction Method: Principal Component Analysis 75 Rotated Component Matrixa Component CCBC2 ,938 CCBC1 ,936 CCBC3 ,903 CCBO2 ,937 CCBO3 ,928 CCBO1 ,902 76 III Correlation among variables Correlations Pearson Correlation AC Pearson Correlation CCB -C CCBC CCBO ,483** ,403** ,467** ,372** ,523** ,480** ,490** ,381** ,000 ,000 ,000 ,000 ,000 ,000 ,000 ,000 249 249 249 249 249 249 249 249 249 ,483** ,386** ,569** ,517** ,585** ,584** ,586** ,467** ,000 ,000 ,000 ,000 ,000 ,000 ,000 249 249 249 249 249 249 249 ,403** ,386** ,403** ,436** ,481** ,354** ,438** ,259** Sig (2-tailed) ,000 ,000 ,000 ,000 ,000 ,000 ,000 ,000 N 249 249 249 249 249 249 249 249 249 ,467** ,569** ,403** ,451** ,694** ,692** ,692** ,629** Sig (2-tailed) ,000 ,000 ,000 ,000 ,000 ,000 ,000 ,000 N 249 249 249 249 249 249 249 249 249 ,372** ,517** ,436** ,451** ,495** ,557** ,532** ,339** Sig (2-tailed) ,000 ,000 ,000 ,000 ,000 ,000 ,000 ,000 N 249 249 249 249 249 249 249 249 249 ,523** ,585** ,481** ,694** ,495** ,639** ,701** ,657** Sig (2-tailed) ,000 ,000 ,000 ,000 ,000 ,000 ,000 ,000 N 249 249 249 249 249 249 249 249 249 ,480** ,584** ,354** ,692** ,557** ,639** ,688** ,650** Sig (2-tailed) ,000 ,000 ,000 ,000 ,000 ,000 ,000 ,000 N 249 249 249 249 249 249 249 249 249 ,490** ,586** ,438** ,692** ,532** ,701** ,688** ,511** Sig (2-tailed) ,000 ,000 ,000 ,000 ,000 ,000 ,000 N 249 249 249 249 249 249 249 249 249 ,381** ,467** ,259** ,629** ,339** ,657** ,650** ,511** Sig (2-tailed) ,000 ,000 ,000 ,000 ,000 ,000 ,000 ,000 N 249 249 249 249 249 249 249 249 Pearson Correlation Pearson Correlation CCB -O RR 249 Pearson Correlation RR PA 249 Pearson Correlation PA CE N Pearson Correlation CE EE ,000 Pearson Correlation EE FE Sig (2-tailed) Pearson Correlation FE DS Sig (2-tailed) N DS AC ,000 249 77 IV Regression analysis Regression between group of servicescape variables (AC, DS, FE, EE, CE) and Positive affect Model Summary Model R ,767a ANOVAa Model Regression Residual Total R Square ,589 Adjusted R Square ,580 Sum of Squares 78,570 54,936 133,506 Std Error of the Estimate ,4754720 df Mean Square 15,714 ,226 243 248 F Sig 69,508 ,000b Coefficientsa Model Unstandardized Coefficients B (Constant) -,155 Std Error ,233 AC ,162 ,054 DS ,184 FE Standardized Coefficients Beta Collinearity Statistics t Sig (2tailed) Tolerance VIF -,663 ,204 ,151 3,020 ,001 ,676 1,478 ,063 ,161 2,914 ,002 ,553 1,808 ,153 ,053 ,141 2,906 ,002 ,718 1,392 EE ,478 ,059 ,429 8,037 ,000 ,593 1,686 CE ,109 ,056 ,100 1,951 ,026 ,647 1,545 78 Regression analysis of servicescape variables and Role readiness Model Summary Mode R R l Square Adjusted R Square Std Error of the Estimate ,764a ,584 ,576 ,4985161 a Predictors: (Constant), CE, AC, FE, EE, DS ANOVAa Model Sum of df Mean Squares Square Regression 84,899 16,980 Residual 60,390 243 ,249 Total 145,289 248 a Dependent Variable: RR b Predictors: (Constant), CE, AC, FE, EE, DS Coefficientsa Model Sig 68,324 ,000b Unstandardized Coefficients B Standar -dized Coefficie nts Std Error Beta F Collinearity Statistics t -1,809 Sig (2tailed) Tolera nce ,036 VIF (Constant) -,442 ,245 AC ,131 ,056 ,117 2,332 ,010 ,676 1,478 DS ,190 ,066 ,160 2,873 ,002 ,553 1,808 FE -,051 ,055 -,045 -,924 ,178 ,718 1,392 EE ,527 ,062 ,454 8,449 ,000 ,593 1,686 CE ,279 ,058 ,246 4,777 ,000 ,647 1,545 a Dependent Variable: RR 79 Regression analysis of customer’s positive affect and customer citizenship behavior toward customer Model Summary Model R R Square Adjusted R Square ,701a ,492 a Predictors: (Constant), PA ANOVAa Model Sum of Squares Regression 64,549 Residual 66,632 Total 131,181 a Dependent Variable: CCBC b Predictors: (Constant), PA ,490 df 247 248 Std Error of the Estimate ,5193881 Mean Square 64,549 ,270 F Sig 239,280 ,000b Coefficientsa Unstandardized Coefficients Model B Std Error (Constant) ,859 ,182 PA ,695 ,045 Standardized Co-efficients Beta ,701 t Sig (2-tailed) Collinearity Statistics Tolerance 4,727 ,000 15,469 ,000 VIF 1,000 1,000 a Dependent Variable: CCBC 80 Regression analysis of role Readiness and Customer citizenship behavior toward customer Model Summary Model R R Square Adjusted R Square ,688a ,474 ,472 a Predictors: (Constant), RR ANOVAa Model Sum of Squares Regression 62,165 Residual 69,016 Total 131,181 a Dependent Variable: CCBC b Predictors: (Constant), RR Std Error of the Estimate ,5285981 df Mean Square 62,165 ,279 247 248 F Sig 222,482 ,000b Coefficientsa (Constant) Unstandardized Coefficients B Std Error 1,288 ,160 RR ,654 Model ,044 Standardized Coefficients Beta Collinearity Statistics t 8,047 ,688 14,916 Sig (2Toletailed) rance ,000 ,000 VIF 1,000 1,000 a Dependent Variable: CCBC 81 Regression analysis of Positive affect and Customer citizenship behavior toward organization ANOVAa Model Sum of Squares Regression 91,193 Residual 120,093 Total 211,286 a Dependent Variable: CCBO b Predictors: (Constant), PA df Mean Square 91,193 ,486 247 248 F Sig 187,559 ,000b Coefficientsa Unstandardized Coefficients Model B Standardized Coefficients Std Error (Constant) ,435 ,244 PA ,826 ,060 Collinearity Statistics t Beta ,657 Sig Tole(2rance tailed) 1,785 ,075 13,695 ,000 VIF 1,000 1,000 a Dependent Variable: CCBO Regression analysis of Role readiness and Customer citizenship behavior toward organization Model Summary Model R R Square Adjusted R Square ,650a ,422 ,420 a Predictors: (Constant), RR Std Error of the Estimate ,7029677 ANOVAa 82 Model df Regression Sum of Squares 89,228 Mean Square 89,228 Residual 122,058 247 ,494 Total 211,286 248 F Sig 180,563 ,000b Coefficientsa Unstandardized Standardized Coefficients Coefficients Model B Std Beta Error (Constant) ,923 ,213 4,338 RR 13,437 ,784 ,058 ,650 t Sig Collinearity (2Statistics tailed) Tole- VIF rance ,000 ,000 1,000 1,000 83 ... influence customer positive affect which in turn influence customer citizenship behavior How servicescape factors influence customer role readiness which in turn influence customer citizenship. .. benefit for other customers as below: Customer citizenship toward customer include: Help the other customer to complete the service properly Customer citizenship toward organization include: Help... role readiness and lead to the increase the likelihood of customer getting involve in customer citizenship behavior in the nursing home service Auh, et al., (2007) demonstrated that customer? ??s