Factors influencing consumer satisfaction toward vinhomes riverside’s terrace houses

Lunghwa Universityof Scienceand Technology Department of Business Administration Thesis for a Master’s Degree Factors influencing consumer satisfaction toward Vinhomes Riverside’s terrace houses Researcher: Duong ThiThanhHoa Supervisor: Pham Thi Lien Cho, James November, 2018 Lunghwa University of Science and Technology Approval Certificate of Master's Degree Examination Board This is to certify that the Master’s Degree Examinations Board has approved the thesis Factors influencing consumer satisfaction toward Vinhomes Riverside’s terrace housespublished by Mr ／Ms Duong ThiThanhHoa in the Master Program of Graduate School of Department of Business Administration Master’s Degree Examination Board Board Members: Prof, PhD Tsan Eric Dr Nguyen Phu Hung Dr Nguyen Thi Hong Hanh Advisors：Assoc Prof Dr Chu, Chih - Chung Dr Mai Anh Chair：Prof PhD Tsan Eric Date: 23/11/2018 ABSTRACT Thesis title: Factors influencing consumer satisfaction toward Vinhomes Riverside’s terrace houses University：Lunghwa University of Science and Technology Graduate School：Department of Business Administration Date:2018 Degree：Master Researcher：Duong ThiThanhHoa Advisor：Pham Thi Lien Cho, James Key word: Customer satisfaction, Terrace houses Customer satisfaction represents a modern approach for quality in enterprises and organizations and serves the development of a truly customer-focused management and culture Measuring customer satisfaction offers an immediate, meaningful and objective feedback about clients’ preferences and expectations In this way, company’s performance may be evaluated in relation to a set of satisfaction dimensions that indicate the strong and the weak points of a business organization This thesis presents an original customer satisfaction survey toward Vinhomes Riverside’ terraced houses Specifically, the study focuses on technical quality, functional quality and warranty services and builder’s readiness to cooperate After collecting information from Vinhomes Riverside’ resident, I would utilize descriptive statistical, comparative and forecasting method to analyze the advantages and disadvantages of Vinhomes in fulfillment and remaining customers i ACKNOWLEDGEMENT I sincerely thank the teacher Prof Pham Thi Lien, and corporate officers of Customer care Department at Vinhomes devoted to guide and help me complete this thesis Thank you! Author Duong ThiThanhHoa ii TABLE OF CONTENTS ABSTRACT i ACKNOWLEDGEMENT ii TABLE OF CONTENTS iii LIST OF FIGURES v LIST OF TABLES vi 1.INTRODUCTION 1.1 Background of the study Error! Bookmark not defined 1.2 Objectives of the study Error! Bookmark not defined 1.3 Scope of the study 1.4 Contribution of the study 1.5 The structure of the study 2.LITERATURE REVIEW 2.1Customer satisfaction 2.2 Some models of customer satisfaction review 2.2.1 Swedish Customer Satisfaction Barometer (SCSB) 2.2.2 American Customer Satisfaction Index (ACSI) 2.2.3 European Customer Satisfaction Index (ECSI) 2.2.4 Service quality model of Parasuraman 2.3 Quality in construction from a customer’s perspective 10 2.3.1 Types of quality in construction 10 2.3.2 Estimation of quality in construction 15 2.4 Real estate market 16 2.4.1 Definition 16 2.4.2 Characteristics 20 3.OVERVIEW OF VINHOMES’ TERRACE HOUSE MARKET 24 3.1 The importance of understanding customers 24 3.2 Overview of terrace house market in Hanoi 27 3.3 Uniqueness of the residential segment 28 3.4 Overview of Vinhomes Riverside’s terrace houses 31 iii 4.RESEARCH METHODOLOGY 33 4.1 Research framework 33 4.2 Research method 33 4.3 Research data 34 4.4 Research data handling method 35 4.5 Research time and avenue 35 4.6 Method of analyzing result 35 5.DATA ANALYSIS AND RESEARCH FINDINGS 36 5.1 Analysis of respondents 36 5.2 Quality assessment of Vinhomes Riverside’s terrace houses 37 5.2.1 Economic motives 38 5.2.2 Technical quality 39 5.2.3 Functional quality 41 5.3 Evaluation of warranty services and builders’ readiness to cooperate 43 5.4 Calculation of customer satisfaction index and loyalty measurements 43 5.5 Client satisfaction matrix 47 5.6 Conclusion 49 6.CONCLUSIONS AND RECOMMENDATIONS FOR VINHOMES RIVERSIDE’ S TERRACE HOUSE 52 6.1 Recommendations on technical quality 52 6.2 Recommendations on functional quality 53 6.3 Recommendations on warranty services and builder’s readiness to cooperate 55 CONCLUSION 56 REFERENCES 58 APPENDICES 61 APPENDIX 1: SURVEY QUESTIONAIRE 61 APPENDIX 2: DESCRIPTIVE STATISTICS RESULT 67 iv LIST OF TABLES Table Table Customer satisfaction index Evaluation of loyalty v 43 44 LIST OF FIGURES Figure The SCSB model Figure The ACSI model Figure The ECSI model Figure Service quality model of Parasuraman Figure Interrelationships between customer 12 satisfaction and quality at the project level Figure RALA’s feedback system 15 Figure Components of customer satisfaction 32 Figure Customer satisfaction matrix 46 vi 1.INTRODUCTION 1.1 Background of the study One of the main aims of each company’s development is to promote cooperation with its clients This development goal recognizes the importance of the customer satisfaction to company’s economic success Already in the 20th century, empirical studies and scientific discussions from the world’s most advanced countries led to a conclusion that a higher level of customer satisfaction encouraged customer attraction, strengthened their loyalty to specific companies, products, or brands, provided higher returns, created less need for product upgrades, and ensured lower price flexibility (Medne, 2007) Modern management science’s philosophy considers customer satisfaction as a baseline standard of performance and a possible standard of excellence for any business organization (Gerson, 1993) Moreover, customer satisfaction measurement provides a sense of achievement and accomplishment for all employees involved in any stage of the customer service process In this way, satisfaction measurement motivates people to perform and achieve higher levels of productivity (Hill, 1996; Wild, 1977; Wild, 1980) Recently, there has been an emerging necessity to improve the degree of customer satisfaction and quality in real estate industry Real companies all around the world started emphasizing the importance of customer satisfaction, so did VINHOMES The terrace house (or terraced house) is one kind of high level product in real estate market and is specific VINHOMES’ s products, which play important role in the VIN GROUP’s vision for the corporate brand and benefit In addition, VIN GROUP’s vision, given in 2016, was to obtain 1st ranking in terrace house supplying up to 2020, and the most important issue to obtain the goal is clearly understand what kind of terrace house are mostly expected by the customers Hence, for supporting VINHOME’s development strategy purpose, the topic “Factors influencing consumer satisfaction toward Vinhomes Riverside’s terrace houses” is opted for my research The study mainly focuses on answering the following key questions: 1 What are factors influencing customer satisfaction toward Vinhomes’ terrace house? How customers satisfy with Vinhomes’ terrace house in general? What are recommendations for the company to enhance customer satisfaction? 1.2 Objectives of the study In order to solve the above research problems, the thesis aims to achieve the following specific objectives: - To present an original customer satisfaction survey toward Vinhomes Riverside’s terrace houses - To give recommendations for the company to enhance customer satisfaction toward Vinhomes’ terrace house 1.3 Scope of the study Regarding space: Vinhomes Riverside Regarding time: The data used for the research will be taken from the last years, from 2015 to 2017 Regarding contents: The thesis focuses on factors affecting client fulfillment toward Vinhomes Riverside’s terrace houses, then give recommendations to promote client fulfillment 1.4 Contribution of the study The finding of this study will redound to the benefit of society considering that customer satisfaction plays an important role in companies’ success The fiercer business competition gets, the better services company must offer to fulfill clients’ requirements Thus, construction or real estate company that apply the recommended approach derived from the results of this study will be able to understand the elements impacting on client satisfaction toward residential housing projects in general For the researcher (or researchers if it is a group study) in the area and related themes, the study would help them uncover critical areas in the business administration that quite a few researchers were not able to explore Thus, a new theory on customer satisfaction Important (3 points) Most important (4 points) Are you satisfied with the apartment and absence of defect? Not at all Satisfied (1p) Partly Satisfied (2p) Satisfied (3p) More than Satisfied (4p) Very Satisfied (5p) Are you satisfied with the technical quality of common areas? Not at all Satisfied (1p) Partly Satisfied (2p) Satisfied (3p) More than Satisfied (4p) Very Satisfied (5p) 10 Which defects related to technical quality you find most distinguished? Please give specific examples (technical quality is understood as the degree to which the physically measurable attributes of the villas and surroundings meet acceptable standards, for example water supply and drainage, etc.) ….……………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… 11 Have you ever made any complaints about the technical faults? How many times? And why? 63 ….……………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… 12 How important is the functional quality of your dwelling? Least Important (1 point) Party Important (2 points) Important (3 points) Most important (4 points) 13 Are you satisfied with your dwelling layout? Not at all Satisfied (1p) Partly Satisfied (2p) Satisfied (3p) More than Satisfied (4p) Very Satisfied (5p) 14 Are you satisfied with terrace houses’ location and access? Not at all Satisfied (1p) Partly Satisfied (2p) Satisfied (3p) More than Satisfied (4p) Very Satisfied (5p) 15 Are you satisfied with courtyard, facilities and accessibility? Not at all Satisfied (1p) 64 Partly Satisfied (2p) Satisfied (3p) More than Satisfied (4p) Very Satisfied (5p) 16 Are you satisfied with car parking? Not at all Satisfied (1p) Partly Satisfied (2p) Satisfied (3p) More than Satisfied (4p) Very Satisfied (5p) 17 Are you satisfied with security measures? Not at all Satisfied (1p) Partly Satisfied (2p) Satisfied (3p) More than Satisfied (4p) Very Satisfied (5p) 18 Which defects related to functional quality you find most distinguished? Please give specific examples.(functional service relates to how the service is provided? how facilities and infrastructure meet the daily need of resident?) ….……………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… 65 19 How important is the warranty services and builder’s readiness to cooperate? Least Important (1 point) Party Important (2 points) Important (3 points) Most important (4 points) 20 Are you satisfied with the available warranty services, defect elimination and problem handling? Not at all Satisfied (1p) Partly Satisfied (2p) Satisfied (3p) More than Satisfied (4p) Very Satisfied (5p) 21 Are you satisfied with builder’s response to your complaints? Not at all Satisfied (1p) Partly Satisfied (2p) Satisfied (3p) More than Satisfied (4p) Very Satisfied (5p) 22 Are you willing to change the dwelling? More than a few times (1p) Only a few times (2p) Never wished to so (3p) 23 Are you ready to make a recommendation to other customers? 66 Absolutely not (1p) Maybe (2p) Surely (3p) 24 Do you consider yourself you are a loyal customer? Absolutely not (1p) Maybe (2p) Surely (3p) Thank you for your precious time! APPENDIX 2: DESCRIPTIVE STATISTICS RESULT Age No Age Frequency Percentage Accumulated percent 21 – 40 years old 240 80 80 41 – 50 years old 51 17 97 51 – 70 years old 100 Total 300 100 Years spent living in Vinhomes Riverside’s terrace houses No Years Frequency Percentage Accumulated percent < year 39 13 13 – years 159 53 66 3 – years 69 23 89 67 4 – years 30 10 Total 300 100 99 Time of dwellings’ construction No Year Frequency Percentage Accumulated percent 2011 201 67 67 2012 69 23 90 2013 30 10 100 Total 300 100 Dwellings’ ownership No Ownership Frequency Percentage Accumulated percent You/your relatives 240 43 43 Banks 51 40 83 Landlords 17 100 Total 300 100 Which villa you are living in? No Villa Frequency Percentage Accumulated percent Queen's Crape-myrtle (Bang Lang) Villas Sakura (Anh Dao) Villas 99 33 33 72 24 57 68 Flamboyant (Hoa Phuong) Villas Milk-white Flower (HoaSua) Villas Orchid (HoaLan) Villas Total 60 20 77 45 15 92 24 100 300 100 Your house has been certified for occupancy or not No Certified for occupancy Frequency Percentage Accumulated percent Yes 279 93 93 No 18 99 Have no idea 100 300 100 Total Customers in search of new dwellings base their choices on? No Key factors Better contemporary living conditions, better layout, space, design(Functional quality) Better technical characteristics (Technical quality) Frequency Percentage Accumulated percent 111 37 37 96 32 69 Economic motives 72 24 93 Prestige and image 21 100 300 100 Total Technical quality of Vinhomes Rivers meets customers’ needs 69 No Meeting need level Frequency Percentage Accumulated percent Fully meet 60 20 20 Sufficient 141 47 67 Average 90 30 97 Not at all meet 100 Total 300 100 Frequency Percentage Accumulated percent 60 20 20 45 15 35 27 44 24 52 21 59 21 66 18 72 Technical defects No Defects Condensation on windows, misting Building facades experienced staining problems such as water mark Wavy surface of plaster due to poor workmanship Poor sound insulation improper finishing of the facade damp basement water collecting on the balcony surface and making tiled surfaces slippery 70 efflorescent (whitish bleeding) spotted on 18 78 79 the wall surface poor precipitation drainage 10 others 33 11 90 11 No defects 30 10 100 Total 300 100 Frequency Percentage Accumulated percent 24 8 21 15 15 20 12 24 25 Functional defects No Defects lack of parking places for cars bad FengShui house location poor access traffic congestion in the township lack of plants and green areas poor housing layout 26 other 29 11 No defects 213 71 100 71 Total 300 100 Response of builders/principals to their complaints No Meeting need level Frequency Percentage Accumulated percent Timely 57 19 19 Average 165 55 74 Delayed or absent 78 26 100 Total 300 100 Importance of technical quality No Importance Frequency Accumulated Least Important 0 Party Important 0 Important 99 297 Most important 201 804 Total 300 1101 Average 3.67 Importance of functional quality No Importance Frequency Accumulated Least Important 0 Party Important 0 72 Important 189 567 Most important 111 444 Total 300 1011 Average 3.37 Importance of warranty services and contractor cooperation quality No Importance Frequency Accumulated Least Important 0 Party Important 279 558 Important 21 63 Most important 0 Total 300 621 Average 2.07 Satisfaction towards dwelling and absence of defects No Satisfaction Frequency Accumulated Not at all Satisfied 0 Partly Satisfied 0 Satisfied 138 414 More than Satisfied 162 648 Very Satisfied 0 73 Total 300 Average 3.54 1062 Satisfaction towards common areas No Satisfaction Frequency Accumulated Not at all Satisfied 0 Partly Satisfied 0 Satisfied 12 36 More than Satisfied 288 1152 Very Satisfied 0 Total 300 1188 Average 3.96 Satisfaction towards dwelling layout No Satisfaction Frequency Accumulated Not at all Satisfied 0 Partly Satisfied 0 Satisfied 168 504 More than Satisfied 132 528 Very Satisfied 0 Total 300 1032 Average 3.44 74 Satisfaction towards location and access No Satisfaction Frequency Accumulated Not at all Satisfied 0 Partly Satisfied 0 Satisfied 150 450 More than Satisfied 0 Very Satisfied 150 750 Total 300 1200 Average 4.00 Satisfaction towards courtyard, facilities and accessibility No Satisfaction Frequency Accumulated Not at all Satisfied 0 Partly Satisfied 0 Satisfied 150 450 More than Satisfied 150 600 Very Satisfied 0 Total 300 1050 Average 3.50 Satisfaction towards car parking 75 No Satisfaction Frequency Accumulated Not at all Satisfied 0 Partly Satisfied 0 Satisfied 261 783 More than Satisfied 39 156 Very Satisfied 0 Total 300 939 Average 3.13 Satisfaction towards security measures No Satisfaction Frequency Accumulated Not at all Satisfied 0 Partly Satisfied 0 Satisfied 186 558 More than Satisfied 114 456 Very Satisfied 0 Total 300 1014 Average 3.38 Satisfaction towards available warranty services, defect elimination and problem handling No Satisfaction Frequency 76 Accumulated Not at all Satisfied 0 Partly Satisfied 219 418 Satisfied 81 243 More than Satisfied 0 Very Satisfied 0 Total 300 681 Average 2.27 Satisfaction towards builder’s response to complaints No Satisfaction Frequency Accumulated Not at all Satisfied 0 Partly Satisfied 261 522 Satisfied 39 117 More than Satisfied 0 Very Satisfied 0 Total 300 639 Average 2.13 77 ... original customer satisfaction survey toward Vinhomes Riverside’s terrace houses - To give recommendations for the company to enhance customer satisfaction toward Vinhomes? ?? terrace house 1.3... Chair：Prof PhD Tsan Eric Date: 23/11/2018 ABSTRACT Thesis title: Factors influencing consumer satisfaction toward Vinhomes Riverside’s terrace houses University：Lunghwa University of Science and Technology... Master’s Degree Examinations Board has approved the thesis Factors influencing consumer satisfaction toward Vinhomes Riverside’s terrace housespublished by Mr ／Ms Duong ThiThanhHoa in the Master