Enhancing customer satisfaction through hotline service the case of the ministry of health’s hotline

Lunghwa Universityof Scienceand Technology Department of Business Administration Thesis for a Master’s Degree Enhancing Customer Satisfaction through Hotline Service – The Case of the Ministry of Health’s Hotline Researcher: Pham Thi Thu Thao Supervisor: Nguyen Ngoc Quang Supervisor: Professor Chi- Cheng Chang July2018 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 Enhancing Customer Satisfaction through Hotline Service– The Case of the Ministry of Health’s Hotlinepublished by Mr.／Ms.Pham Thi Thu Thao in the Master Program of Graduate School of Department of Business Administration Master’s Degree Examination Board Board Members： Advisors：Assoc Prof Phd Nguyen Ngoc Quang Prof Chi – Cheng Chang Chair： Date： ABSTRACT Thesis Title：Enhancing customer satisfaction through hotline service – The case of the Ministry of Health’s hotline Pages：34 University：Lunghwa University of Science and Technology Graduate School：Department of Business Administration Date：January, 2018 Degree：Master Researcher：Pham Thi Thu Thao Advisor：Nguyen Ngoc Quang and Chi – Cheng Chang Keywords:Customer satisfation, customer service effectiveness, the Ministry of Health, hotline service Regarding to the importance of customer satisfaction, the study drives its interest towards quality of hotline services in Vietnam A case study is explored through Ministry of Health’s hotline services It is notable that health service is booming in Vietnam The study is aimed to identify current performance of hotline services offered by the Ministry of Health and how current performance influencing on customer satisfaction The research questions therefore will be: - What are the impacts of determinants to customer satisfaction in handling feedbacks in Ministry of Health’s hotline service? - What are recommendations to further improve effectiveness of handling feedbacks in Ministry of Health’s hotline service? There are many research strategies that are being used in academic studies, including survey, interview, case study, ethnography, grounded theory, or historical documents In this study, survey strategy will be used as main research strategy The author would like to collect primary data from 100 respondents and the first data analysis is conducted to clarify their demographic information, including gender, age, place of work, and period of using services The next data analysis refers to reliability test and it comes up with requirements The first requirement refers to calculation of Cronbach’s Alpha and expected value is higher than 0.6 The second requirement refers to Corrected item-total correlation and the value must be higher than 0.3 The last iii requirement refers to calculation of Cronbach’s Alpha if one variable is deleted and expected value should be lower than Cronbach’s Alpha which is obtained in first requirement checking Some conclusions have been made from the thesis First, descriptive statistics is conducted with mean value calculation for each variable used in survey of questionnaire.Second, reliability test and EFA test are conducted to check reliability and validity of the survey item.Third, ANOVA analysis shows that there are no difference among the respondents who have different demographic characteristics in term of customer satisfaction and customer service effectiveness Fourth, multiple linear regressions are conducted for two pair of causal relationship From above conclusions, the author recommends that the companies need to consider the importance of treating customers politely Moreover, the companies need to consider the importance of service capacity as it has highest influence on customer service effectiveness Furthermore, the Ministry of Health should develop specific indexes to measure customer satisfaction with hotline services in specific and overall services in general.Finally, the Ministry of Health must align hotline service performance with all branches and subsidiaries in provinces iv ACKNOWLEDGEMENT I sincerely thank the teacher Assoc.Prof.Dr.Nguyen Ngoc Quang and Prof ChiCheng Chang, and corporate officers at the Ministry of Health devoted to guide and help me complete this thesis Thank you! Author Pham Thi Thu Thao v TABLE OF CONTENTS ABSTRACT iii ACKNOWLEDGEMENT v LIST OF FIGURE viii INTRODUCTION 1.1 Urgency of the topic 1.2 Research objective& Research questions 1.3 Scope of the study 1.4 Significance of the study 1.5 Structure of the study LITERATURE REVIEW 2.1 Customer satisfaction 2.2 Hotline service 2.3 Customer service effectiveness 2.4 The relationship between customer service effectiveness and customer satisfaction 2.4 Research Structure and Hypothesis RESEARCH METHODOLOGY 10 3.1 Research philosophy 10 3.2 Research approach 10 3.3 Research strategy 11 3.4 The choice between quantitative and qualitative 11 3.5 Data collection 12 3.6 Survey of questionnaire 12 3.7 Sampling 14 3.8 Data analysis techniques 14 DATA ANALYSIS AND FINDING 16 4.1 Demographic analysis 16 4.2 Mean value analysis 17 4.3 Reliability test analysis 19 4.4 Explanatory factor analysis 20 4.5 ANOVA analysis 22 4.6 Multiple linear regression 24 CONCLUSION AND RECOMMENDATION 27 5.1 Conclusion 27 5.2 Recommendation 28 REFERENCE 30 APPENDIX: SURVEY OF QUESTIONNAIRE 35 vi LIST OF TABLE Table 1: Survey of questionnaire 13 Table 2: Demographic information 16 Table 3: Mean value analysis 17 Table 4: Reliability test result 18 Table 5: KMO and Bartlett’s Test 20 Table 6: Total Variance Explained 20 Table 7: Rotated Component Matrix 21 Table 8: Independent Sample T-Test for Gender 22 Table 9: One-Way ANOVA for Age 23 Table 10: One-Way ANOVA for Place of Work 23 Table 11: One-Way ANOVA for Period of Using Services 24 Table 12: Multiple linear regression for 1st causal relationship 25 Table 13: Multiple linear regression for 2nd causal relationship 26 vii LIST OF FIGURE Figure 1: Health Expenditure per capita US$ Figure 2: Information flow in hotline service Figure 3: Research Structure viii INTRODUCTION 1.1Urgency of the topic Customer satisfaction is playing prominent role in almost firms today It is also considered as strategic weapon and contribution much into firms’ successes Generally, customer satisfaction brings many positive effects to firms such as higher repeat purchases from the customers, selling products or services at higher prices (Sheth, 2001) It is notable that higher repeat purchases from the customers is assured from higher customer purchasing intention and customer retention rate when they get satisfaction with product or service performance (Lemon et al., 2002; Bolton, 1998; Rust and Zahorik, 1993) Empirical evidence from Dawkins and Reichheld (1990) shows that customer satisfaction helps to increase profit of the firms by more than 25% In addition, customer satisfaction is more important than discounted prices (Gupta et al., 2004) Customer satisfaction establishes the evidence to sell product or service even at higher prices than averages in the market (Sheth, 2001) Empirical evidence from shows that higher price setting and customer satisfaction is associated with each other (He et al., 2008) Moreover, when customers get satisfaction with product or service, they are likely to become loyalty customers and it is critical requirement during crisis period (Nelson et al., 2009) Report from The Institute for Working Futures (2012) indicates that loyalty customer remains purchasing volume and therefore the firms have more opportunity to survive throughout this period Another benefit of customer satisfaction is generated from positive word-of-mouth (WOM), as cited by Oliver (1997) It is denoted that WOM is a process whether satisfied customers provide positive comments about product or service quality to their friends or family members and therefore the firms have more opportunity to sell product or service to potential customers (Ha and Janda, 2008) Moreover, WOM allows the firms not too much spending to advertising efforts and therefore operating cost is saved and profit margin is higher (Khraim, 2011) Customer satisfaction is important to the firms due to satisfied customers often provide feedbacks about product or service quality (Keller and Libai, 2009) It is useful ideas and realistic evidences for further improvement or even higher innovation in new product or service design (Someshwar et al., 2001) Regarding to the importance of customer satisfaction, the study drives its interest towards quality of hotline services in Vietnam A case study is explored through Ministry of Health’s hotline services It is notable that health service is booming in Vietnam Vietnam vs World in Health expenditure per capita (current US$) 1,060 1,200 1,000 800 600 400 142 200 - Vietnam World Vietnam vs Thailand vs Malaysia vs Singapore in Health expenditure per capita (current US$) 2,752 3,000 2,500 2,000 1,500 1,000 456 228 142 500 - Malaysia Singapore Thailand Vietnam Figure Health Expenditure per capita US$ Source: World Bank (2017) The report from World Bank (2017) shows that total health expenditure per capita by US$ in Vietnam increases continuously from only US$14 in 1995 to US$142 in 2014 However, this number is much lower than global average which is stood at US$1,060 in 2014 (World Bank, 2017) Compared to other countries in ASEAN like Customer satisfaction Equal variances assumed 4.851 030 Equal variances not assumed Customer service effectiveness Equal variances assumed 209 649 Equal variances not assumed 1.186 98 239 115 097 -.077 307 1.184 96.931 239 115 097 -.078 307 965 98 337 07483 07754 07905 22871 965 97.883 337 07483 07753 07904 22870 Table above shows that Independent Sample T-Tests for relationship between gender and customer satisfaction equality of means in case of equal variances assumption and equal variance not assumption is 0.239 and 0.239 and they are higher than 0.05 It means that male and female not have difference in term of customer satisfaction evaluation In case of customer service effectiveness, Independent Sample T-Test for relationship between gender and customer satisfaction equality of means in case of equal variances assumption and equal variance not assumption is 0.337 and 0.337 and they are higher than 0.05 It means that male and female not have difference in term of customer service effectiveness evaluation Table One-Way ANOVA for Age Variable Customer satisfaction Customer service effectiveness Assumption Between Groups Within Groups Total Between Groups Within Groups Total Sum of Squares 229 23.081 23.310 062 14.804 14.866 df Mean Square 97 99 97 99 F Sig .115 238 481 619 031 153 203 817 Table above shows that F-Test values of customer satisfaction and customer service effectiveness are 0.481 and 0.203 and Sig are 0.619 and 0.817 and they are higher than 0.05 It means that younger and older respondents not have different assessment in term of their satisfaction and customer service effectiveness of the companies 23 Variable Customer satisfaction Customer service effectiveness Table 10 One-Way ANOVA for Place of Work Sum of df Mean Square Assumption Squares Between Groups 1.574 525 Within Groups 21.736 96 226 Total 23.310 99 Between Groups 447 149 Within Groups 14.419 96 150 Total 14.866 99 F Sig 2.318 080 992 400 Table above shows that F-Test values of customer satisfaction and customer service effectiveness are 2.318 and 0.992 and Sig are 0.080 and 0.400 and they are higher than 0.05 It means that the respondents who work in different company types not have different assessment in term of their satisfaction and customer service effectiveness of the companies Table 11 One-Way ANOVA for Period of Using Services Variable Customer satisfaction Customer service effectiveness Assumption Between Groups Within Groups Total Between Groups Within Groups Total Sum of Squares 637 22.673 23.310 516 14.350 14.866 df Mean Square 96 99 96 99 F Sig .212 236 899 445 172 149 1.150 333 Table above shows that F-Test values of customer satisfaction and customer service effectiveness are 0.899 and 1.150 and Sig are 0.445 and 0.333 and they are higher than 0.05 It means that the respondents who have different time to use services not have different assessment in term of their satisfaction and customer service effectiveness of the companies 4.6 Multiple linear regression The last data analysis refers to multiple linear regression and it helps to clarify the causal relationship between dependent and independent variables In this study, there are pair of causal relationship The first relationship is between customer service effectiveness and independent variables namely service capacity, convenience perception, resolving complaint, and customer service Obtained result is presented in the table below: Table 12 Multiple linear regression for 1st causal relationship 24 Adjusted R-Square = 558; F-Test = 32.206; Sig = Unstandardized Coefficients Standardized Coefficients B Std Error Beta (Constant) 705 260 Service capacity 274 031 605 Convenience perception 299 043 481 Resolving complaint 146 028 350 Customer service 062 037 113 Dependent Variable: Customer service effectiveness Model t Sig 2.705 8.733 6.936 5.175 1.694 Table above shows that service capacity, convenience perception, resolving complaint, and customer service can explain for 55.8% of changes in customer service effectiveness This relationship is statistical significant at 5% due to F-Test is equal to 32.206 and its p-value is less than 0.05 H1: Service capacity has positive impact to customer service effectiveness.175 Service capacity has B and Beta values of 0.274 and 0.605 and T-Test is equal to 8.733 and p-value is less than 0.05 Thus, H1 is accepted Moreover, when service capacity is improved by unit, customer service effectiveness will improve 0.605 unit This variable has highest Beta value and therefore it has highest influence on customer service effectiveness compared to other variables H2: Convenience perception has positive impact to customer service effectiveness Convenience perception has B and Beta values of 0.299 and 0.481 and T-Test is equal to 6.936 and p-value is less than 0.05 Thus, H2 is accepted Moreover, when convenience perception is improved by unit, customer service effectiveness will improve 0.481 unit H3: Resolving complaint has positive impact to customer service effectiveness Resolving complaints has B and Beta values of 0.146 and 0.350 and T-Test is equal to and p-value is less than 0.05 Thus, H3 is accepted Moreover, when resolving complaints is improved by unit, customer service effectiveness will improve 0.350 unit H4: Customer service has positive impact to customer service effectiveness Customer service has B and Beta values of 0.062 and 0.113 and T-Test is equal to 1.694 and p-value is higher than 0.05 Thus, H4 is rejected at 5% of confidence interval and is accepted at 10% of confidence interval Moreover, when customer service is improved by unit, customer service effectiveness will improve 0.113 unit This variable has lowest Beta value and therefore it has lowest influence on customer service effectiveness compared to other variables 25 008 000 000 000 094 The second relationship is between customer service effectiveness and customer satisfaction In this relationship, customer service effectiveness plays the role of independent variable while customer satisfaction is dependent one Obtained result is presented in the table below: Table 13 Multiple linear regression for 2nd causal relationship Adjusted R-Square = 830; F-Test = 484.391; Sig = Model Unstandardized Coefficients Standardized t Sig Coefficients B Std Error (Constant) -.479 176 Customer service 1.142 052 Beta 912 -2.719 008 22.009 000 effectiveness Dependent Variable: Customer satisfaction Table above shows that customer service effectiveness can explain for 83.0% of changes in customer satisfaction This relationship is statistical significant at 5% due to F-Test is equal to 484.391 and its p-value is less than 0.05 H5: Customer service effectiveness has positive impact to customer satisfaction Customer service effectiveness has B and Beta values of 1.142 and 0.912 and T-Test is equal to 22.009 and p-value is less than 0.05 Thus, H5 is accepted Moreover, when customer service effectiveness is improved by unit, customer satisfaction will improve 0.912 unit 26 CONCLUSION AND RECOMMENDATION 5.1 Conclusion There are several conclusions that are collected from previous chapter: First, descriptive statistics is conducted with mean value calculation for each variable used in survey of questionnaire The result shows that one variables (SCA5) has mean value less than 2.5, meaning that the respondents disagree with the statement of the employees treat customers politely It is big surprising result due to the negative impact of impolite treatment from the employees to the customers Second, reliability test and EFA test are conducted to check reliability and validity of the survey item The result shows that all variables (customer service effectiveness, service capacity, convenience perception, resolving complaint, customer service, and customer satisfaction) gain good reliability level in the survey scale Moreover, EFA shows that there are components to be extracted and it does not need to change conceptual research model and stripped research hypotheses Third, ANOVA analysis shows that there are no difference among the respondents who have different demographic characteristics in term of customer satisfaction and customer service effectiveness Fourth, multiple linear regressions are conducted for two pair of causal relationship The first causal relationship is between customer service effectiveness and independent variables namely service capacity, convenience perception, resolving complaint, and customer service The result shows that service capacity, convenience perception and resolving complaint have positive and significant relationship with customer service effectiveness Moreover, service capacity has highest influence on customer service effectiveness However, customer service has p-value higher than 0.05 and less than 0.1 or H4 is rejected at 5% of confidence interval and is accepted at 10% of confidence interval The second causal relationship is between customer satisfaction and customer service effectiveness It shows that customer service effectiveness can explain for 83.0% of changes in customer satisfaction This relationship is statistical significant at 5% and H5 is accepted 27 5.2 Recommendation From above conclusions, there are several recommendations will be made up: First, the companies need to consider the importance of treating customers politely To treat the customer politely, the companies need to establish a code of conduct of which the employees need to strictly follow when they are working with customers Another way to ensure polite treatment refers to training for the employees The training must be provided in annual or quarterly basis so that the employees gain frequent and proper training in term of professional works and how to work with customers The training should be conducted for new employees when they join to the companies so that they will perceive how to work with customers Moreover, the companies in Vietnam need to invest into customer service system of which all the conversation between the employees and the customers are well-recorded and then these files will be put into analyses and reevaluation to ensure quality conversation is provided by the employees Ranking among employees who are working in customer service center is must-be and it helps to identify who the best employees in term of quality customer service and then they will receive additional bonus or reward for quality of work amount Second, the companies need to consider the importance of service capacity as it has highest influence on customer service effectiveness To ensure service capacity is sufficient, the companies need to establish the estimation of future requirement for customer service such as how many customers need to be served per day and what frequent questions from the customers The companies can rely on historical data to estimate a future trend and therefore they can setup proper customer service center with adequate head count to handle customers’ complaints during the day In addition, a list of frequent-asked questions will be collected and placed in the companies’ websites so that the customers can quickly resolve the issues without the need of contacting customer service center This action also helps to reduce the head count needed for customer services and therefore reducing operating cost to the companies The companies need to invest into modern customer service electronic system so that they can quickly resolve customers or escalate big issues to higher hierarchy Third, the Ministry of Health should develop specific indexes to measure customer satisfaction with hotline services in specific and overall services in general It is suggested that the Ministry of Health should provide five indicators The first indicator refers to accessibility index and it is measured as how long as the customers 28 have to be waited for the answers in term of their queries The second indicator refers to information transparency and administrative procedure responsiveness To that the Ministry of Health should publish the process of customer service in its website or mass media in order to ensure that the customers are fully perceived about the process The third index refers to material or facilities index and it is measured through how performance of telephone lines during the time of customers to make calls to hotline services of the Ministry of Health It is required that the Ministry of Health should capture all the dropped calls and to capture the information of which the customers complaint from cannot hearing from the staffs The fourth index refers to the staff’s attitudes and the Ministry of Health should provide frequent training to the employees in hotline services in order to assure that the employees can serve the customers at best Finally, the last index refers to service performance index and it is the combined score from four index above The higher score means the higher service performance and vice versa Fourth, the Ministry of Health must align hotline service performance with all branches and subsidiaries in provinces Herein, all branches and subsidiaries which are under administrative management of the Ministry of Health should provide times and resources to implement five indexes above and the result must be sent to the Ministry of Health for consolidation and evaluation A branch or subsidiary which has low score will be put into attention All branches and subsidiaries in provinces should conduct monitoring and evaluation of the implementation of the measurement of people’s satisfaction with public health services of local health service delivery agencies 29 REFERENCE Tran, T P., Tran, T H C., Ngo, C H L., and Ha, T Q (2016) Factors affecting performance enhancing customer service in Vietnamese business in the competition and integrated 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Advisors：Assoc Prof Phd Nguyen Ngoc Quang Prof Chi – Cheng Chang Chair： Date： ABSTRACT Thesis Title? ?Enhancing customer satisfaction through hotline service – The case of the Ministry of Health’s hotline. .. services of the Ministry of Health Then, this study will provide a group of solutions to improve customer satisfaction with current hotline services Moreover, the performance of hotline services of the. .. Regarding to the importance of customer satisfaction, the study drives its interest towards quality of hotline services in Vietnam A case study is explored through Ministry of Health’s hotline services