Solutions to improve customer satisfaction at sony service center in northern vietnam

SOLUTIONS TO IMPROVE CUSTOMER SATISFACTION AT SONY SERVICE CENTER IN NORTHERN VIETNAM Program : Master of Marketing and Prospective Author : Luong Thi Hue Class : Marketing Supervisor : Trung Hien Nguyen, PhD International School – Vietnam National University Ha Noi, August 2018 ACKNOWLEDGEMENTS This work would not have been possible without the support from the Director of Sony Center Ms.Vo Dien who spent time to share with me about the vision and mission of Sony Service Center I am especially indebted to PhD Nguyen Trung Hien, lecturer of Marketing Head who has been supportive of my thesis Without his guidance, my thesis wouldn’t be completed A very special gratitude goes out to all my friends and my colleagues at Sony Service Center in Ha Noi who helped me to communicate with customers, collected surveys, giving me a lot of information for my thesis My sincere thanks also goes to Mr Loc, my ex-colleague who is an expert of SPSS He helped me analyze data and find the results from SPSS Without him, my thesis cannot be completed And finally, last but by no means least, many thanks go to attendants who directly or indirectly involved in this thesis, without their help, I wouldn’t figure out issues and recommendation for my thesis Thanks for all your encouragement TABLE OF CONTENTS ACKNOWLEDGEMENTS TABLE OF CONTENTS LIST OF FIGURES LIST OF ABBREVIATION LIST OF TABLES ABSTRACT 10 INTRODUCTION 11 Reason for choosing thesis topic (the importance of thesis topic) 11 Objectives and Tasks 12 Research objects 12 Scope of research 12 Thesis methodology 12 CHAPTER 1: THEORETICAL BASE OF SERVICE QUALITY 15 1.1 Theory of service and service quality 15 1.1.1 Definition of service and repair, warranty services 15 1.1.2 Quality and service quality 16 1.1.3 Instruments of service quality 17 1.1.4 The need for measuring and evaluating service quality 20 1.2 Theory of customer satisfaction in the service sector 23 1.2.1 Definition of satisfaction 23 1.2.2 Why must customer satisfaction 23 1.3 The relationship between quality of service and customer satisfaction 24 1.3.1 The American Customer Satisfaction Index 24 1.3.2 The European Customer Satisfaction Index 25 1.4 Model and research hypothesis 26 1.4.1 Study models 26 1.4.2 Research hypotheses 27 1.5 Research Methods 28 1.5.1 Research design 28 1.5.2 Research process 34 Summary of Chapter 35 CHAPTER 2: ANALYSES CUSTOMER SATISFACTION FOR REPAIR SERVICE, WARRANTY OF SONY SERVICE CENTER 36 2.1 Introduction of Sony Vietnam service center 36 2.1.1 Company profile and repair, warranty service 36 2.2 Quantitative analysis of the quality of repair and warranty service provided by Sony Vietnam 37 2.2.1 Results of survey data collection 37 2.2.2 Rating scale with Cronbach's Alpha reliability 38 2.2.3 Exploratory Factor Analysis (EFA) 40 2.2.4 Evaluate the impact of factors on customer satisfaction through regression analysis 45 2.2.5 Analytical results 50 2.3 Qualitative analysis of the repair and warranty service quality provided by Sony Vietnam Service center 54 2.3.1 Reliability component 55 2.3.2 Responsiveness component 56 2.3.3 Empathy component 58 2.3.4 Tangible component at the service center 59 2.3.5 Infrastructure component of the service center 59 2.3.6 Assurance component 60 2.4 General assessment of factors affecting the quality of repair and maintenance services of Sony Vietnam Service center 60 2.4.1 Reliability component 60 2.4.2 Responsiveness Component 61 2.4.3 Empathy component 61 2.4.4 Tangible component at the service center 61 2.4.5 Infrastructure component of the service center 61 2.4.6 Assurance component 61 Summary of Chapter 62 CHAPTER 3: IMPROVING THE CUSTOMER SATISFACTION OF WARRANTY SERVICE OF SONY VIETNAM SERVICE CENTER 63 3.1 Warranty Objectives: Best Customer Service Center in Asia 63 3.2 Actions to improve the quality of repair, warranty services 64 3.2.1 Responsiveness 64 3.2.2 Reliability 67 3.2.3 Empathy 70 3.2.4 Tangible at the service center 71 3.2.5 Infrastructure of the service center 71 3.2.6 Assurance 74 Summary of Chapter 75 CONCLUSION 76 REFERENCES 78 APPENDIX 80 LIST OF FIGURES Figure 1 The American Customer Satisfaction Index 24 Figure The European Customer Satisfaction Index 25 Figure The Research Model 26 Figure Research Process 34 Figure Official research model 44 LIST OF ABBREVIATION 3D : three dimension ASC : Authorized service center CSP : Customer service plaza DSC : Direct service center EFA : Exploratory Factor Analysis ESC : Exclusive service center FIFO : First In, First Out HD : High dedfinition IMEI : International Mobile Equipment Identity KMO : Kaiser – Meyer – Olkin KPI : Key performance Index NFC : Near Field Communcation NPS : Net Promote Score RTAT : Repair Turn Around Time VIF : Variance Inflation Factor LIST OF TABLES Table 1 Factors and Observation Variables 31 Table Statistics on sex characteristics and age of survey data 38 Table 2 Reliability of initial scale scales 40 Table Factor matrix has been rotated 41 Table Barlett and KMO test 43 Table Linear regression 46 Table The suitability of the model 47 Table Analysis of Anova 48 Table Reliability 51 Table Responsiveness 51 Table 10 Empathy 52 Table 11 Tangible at the service center 53 Table 12 Infrastructure of the service center 53 Table 13 Assurance 54 Table 14 Repairing repetition rate 56 Table 15 Consumption rate and total stock of spare parts 57 LIST OF APPENDIX Appendix 1: QUALITATIVE QUESTIONNAIRE Appendix 2: QUANTITATIVE QUESTIONAIRE Appendix 3: AVERAGE POINT FOR EACH SECTION Appendix 4: THE RESULT OF CRONBACH’S ANPHA Appendix 5: THE RESULT OF TOTAL VARIANCE EXPLAINED Appendix 6: THE RESULT OF EXPLORATORY FACTOR ANALYSIS Appendix 7: PEARSON’S CORRELATION COEFFICENT Appendix 8: REGRESSION ANALYSIS TABLE WITHOUT VARIABLES Appendix 9: REGRESSION ANALYSIS TABLE WITH SEX DUMMY VARIABLES Appendix 10: REGRESSION ANALYSIS TABLE WITH AGE DUMMY VARIABLES ABSTRACT Nowadays, the competition among enterprises is growing in intensity and organizations of all types and sizes have increasingly come to understand the importance of customer satisfaction and good services The purpose of this thesis is to provide solutions to improve the quality of repair and maintenance services through the customer satisfaction survey at Sony Service Center This thesis will discuss and analyze the factors that influence the customer’s level of satisfaction and assist the company to analyze the current situation and identify any existing problems with their services Data used in this thesis are collected from conducting survey of customer in Ha Noi With the help from the Manager and staffs of Sony Service Center, the collected data has 236 valid responses, the customer identified components include Responsiveness, Reliability, Tangible, Empathy, Infrastructure and Assurance Furthermore, the thesis measures consumer satisfaction and identify important strengths need to be retained and weaknesses need to be worked on fast Based on the result, the thesis also gives some suggestions for Sony Center to further improve Customer Service level 10 Cronbach's Alpha Based on Standardized Cronbach's Items Alpha ,794 N of Items ,795 Item-Total Statistics Corrected Scale Mean if Scale Item- Total Variance if Correlation Cronbach Squared 's Alpha if Multiple Item Correlation Deleted Item Item Deleted Deleted v6 13,157 3,350 ,557 ,319 ,767 v7 13,017 3,064 ,648 ,427 ,720 v8 13,008 3,379 ,647 ,436 ,722 v9 12,835 3,602 ,573 ,350 ,758 Empathy Component Reliability Statistics 89 Cronbach's Alpha Based on Cronbac h's Standardized Items N Alpha ,780 of Items ,783 Item-Total Statistics Corrected Scale Mean Scale if Item- Total Cronbach Squared 's Alpha if Variance if Correlation Multiple Item Item Item Correlation Deleted Deleted Deleted v10 17,890 4,635 ,515 ,306 ,752 v11 18,017 3,940 ,621 ,396 ,716 v12 17,873 4,571 ,473 ,228 ,766 v13 17,890 4,456 ,540 ,326 ,744 v14 17,754 4,467 ,642 ,426 ,714 Tangible Component Reliability Statistics 90 Cronbach's Alpha Based on Cronbac h's Standardized Items Alpha N of Items ,668 ,676 Item-Total Statistics Scale Mean if Item Deleted Corrected Scale Item- Total Variance if Correlation Item Deleted Squared Multiple Correlation Cronbach 's Alpha if Item Deleted v15 21,479 7,212 ,308 ,381 ,655 v16 21,640 6,955 ,353 ,376 ,643 v17 21,585 7,078 ,314 ,382 ,652 v18 22,114 5,285 ,498 ,376 ,586 v19 22,301 4,960 ,533 ,451 ,571 v20 22,025 5,906 ,409 ,284 ,622 91 Assurance Component Cronbach's Alpha Based on Cronbac h's Standardized Items N Alpha ,789 of Items ,793 Item-Total Statistics Corrected Scale Mean if Scale Item- Total Variance if Correlation Cronbach Squared 's Alpha if Multiple Item Correlation Deleted Item Item Deleted Deleted v21 18,008 3,991 ,550 ,330 ,755 v22 17,958 4,296 ,512 ,295 ,766 v23 18,059 4,022 ,617 ,407 ,733 v24 18,110 3,750 ,556 ,365 ,757 v25 17,932 4,140 ,619 ,386 ,735 92 Service Satisfaction Component Reliability Statistics Cronbach's Alpha Based on Cronbac h's Alpha Standardized Items N of Items ,596 ,596 Item-Total Statistics Corrected Scale Mean if Scale Item- Total Variance if Correlation Item Item Deleted Deleted Cronbach Squared 's Alpha if Multiple Item Correlation Deleted v26 8,771 1,445 ,443 ,197 ,437 v27 8,530 1,527 ,397 ,163 ,506 v28 8,589 1,545 ,374 ,143 ,539 93 Tangible Component at Sony Service Center Cronbach's Alpha Based on Cronbach's Alpha ,770 Standardized Items N of Items ,771 Item-Total Statistics Corrected Scale Mean if Scale Item- Total Variance if Correlation Item Item Deleted Deleted Cronbach Squared 's Alpha if Multiple Item Correlation Deleted v15 9,233 1,073 ,607 ,369 ,690 v16 9,394 ,997 ,596 ,356 ,700 v17 9,339 ,991 ,611 ,374 ,683 94 Infrastructure component of the service center Reliability Statistics Cronbach's Alpha Based on Standardized Cronbach's Items Alpha N of Items ,751 ,750 Item-Total Statistics Corrected Scale Scale Item- Cronbach's Squared Alpha if Mean if Variance if Total Multiple Item Item Item Correlati Correlation Deleted Deleted Deleted on v18 8,131 2,702 ,582 ,367 ,664 v19 8,318 2,371 ,658 ,437 ,571 v20 8,042 3,130 ,508 ,269 ,745 95 Appendix 5: THE RESULT OF TOTAL VARIANCE EXPLAINED Total Variance Explained Initial Eigenvalues Component Total % of Cumulative Variance % Extraction Sums of Squared Loadings Total % of Variance Rotation Sums of Squared Loadings Cumulative % Total % of Variance Cumulative % 7,753 31,014 31,014 7,753 31,014 31,014 2,781 11,125 11,125 2,028 8,113 39,127 2,028 8,113 39,127 2,733 10,933 22,058 1,700 6,799 45,926 1,700 6,799 45,926 2,617 10,470 32,527 1,504 6,018 51,944 1,504 6,018 51,944 2,498 9,990 42,517 1,129 4,516 56,459 1,129 4,516 56,459 2,352 9,408 51,926 1,113 4,452 60,911 1,113 4,452 60,911 2,246 8,985 60,911 ,988 3,952 64,863 ,789 3,156 68,019 ,766 3,062 71,082 10 ,708 2,831 73,912 11 ,674 2,694 76,607 12 ,641 2,565 79,172 13 ,582 2,330 81,502 14 ,517 2,069 83,571 15 ,493 1,973 85,544 16 ,473 1,890 87,434 17 ,462 1,846 89,281 18 ,439 1,758 91,038 19 ,414 1,654 92,692 20 ,395 1,581 94,273 21 ,360 1,439 95,712 22 ,308 1,232 96,944 23 ,278 1,114 98,057 24 ,245 ,979 99,037 25 ,241 ,963 100,000 Extraction Method: Principal Component Analysis 96 Appendix 6: THE RESULT OF EXPLORATORY FACTOR ANALYSIS Rotated Component Matrixa Component -,067 ,673 ,326 ,049 ,278 ,677 ,100 ,041 ,047 ,285 ,627 ,227 ,075 ,115 ,397 ,116 ,586 ,007 ,062 v5 ,400 ,112 ,087 ,649 ,021 ,059 v6 ,340 ,154 ,521 ,186 ,023 ,283 v7 ,194 ,096 ,725 ,176 ,169 ,163 v8 ,178 ,134 ,757 ,141 ,093 ,159 v9 ,280 ,177 ,587 ,150 ,271 ,086 v10 ,517 ,072 ,169 ,105 ,468 ,124 v11 ,712 ,214 ,079 ,149 ,130 ,257 v12 ,626 ,261 ,095 -,034 ,082 -,082 v13 ,685 ,088 ,282 ,091 ,024 -,019 v14 ,618 ,091 ,339 ,245 ,253 ,138 v15 -,010 ,217 ,224 ,118 ,762 -,019 v16 ,239 ,265 ,125 ,168 ,630 ,071 v17 ,184 ,167 ,099 ,219 ,777 -,004 v18 ,055 -,055 ,121 ,103 ,087 ,793 v19 ,191 ,043 ,096 ,069 -,007 ,832 v20 -,085 ,221 ,183 ,004 -,022 ,711 v21 ,001 ,580 ,457 ,094 ,227 ,053 v22 ,237 ,520 ,330 ,273 ,111 -,102 v23 ,138 ,708 ,039 ,169 ,224 ,135 v24 ,203 ,679 ,002 -,024 ,200 ,340 v25 ,262 ,720 ,169 ,027 ,148 -,062 v1 -,028 ,191 v2 ,040 -,140 v3 ,060 v4 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization 97 Rotation converged in iterations Appendix 7: PEARSON’S CORRELATION COEFFICENT Emp athy Reliability X3 X2 Responsive ness Infras tructu re at servic e cente r X5 Tangible at service center X4 X1 Responsiveness X1 Pearson Correlation Sig (2-tailed) ReliabilityX EmpathyX3 Assurance X6 Satisfaction level Y1 Satisfac tion level Y1 ,468** ,384** ,439** ,254** ,388** ,476** ,000 ,000 ,000 ,000 ,000 ,000 N 236 236 236 236 236 236 236 Pearson Correlation ,468** ,509** ,417** ,363** ,430** ,530** Sig (2-tailed) ,000 ,000 ,000 ,000 ,000 ,000 N 236 236 236 236 236 236 236 Pearson Correlation ,384** ,509** ,422** ,255** ,463** ,567** Sig (2-tailed) ,000 ,000 ,000 ,000 ,000 ,000 N 236 236 236 236 236 236 236 ,439** ,417** ,422** ,131* ,424** ,567** ,000 ,000 ,000 ,045 ,000 ,000 N 236 236 236 236 236 236 236 Pearson Correlation ,254** ,363** ,255** ,131* ,304** ,361** Sig (2-tailed) ,000 ,000 ,000 ,045 ,000 ,000 N 236 236 236 236 236 236 236 Pearson Correlation ,388** ,430** ,463** ,424** ,304** ,560** Sig (2-tailed) ,000 ,000 ,000 ,000 ,000 N 236 236 236 236 236 236 Pearson Correlation ,476** ,530** ,567** ,567** ,361** ,560** Sig (2-tailed) ,000 ,000 ,000 ,000 ,000 ,000 N 236 236 236 236 236 236 Tangible Pearson at service center Correlation X4 Sig (2-tailed) Infrastructure at service center X5 Assur ance X6 ** Correlation is significant at the 0.01 level (2-tailed) * Correlation is significant at the 0.05 level (2-tailed) 98 ,000 236 236 Appendix 8: REGRESSION ANALYSIS TABLE WITHOUT VARIABLES Unstandardized Coefficients B Model Std Error Collinearity Statistics Standardized Coefficients Sig Bê-ta t VIF Tolerance (Constant) Responsiveness X1 ,006 ,273 ,021 ,984 ,099 ,053 ,099 1,861 ,064 ,682 1,467 Reliability X2 ,090 ,045 ,116 2,024 ,044 ,590 1,695 Empathy X3 ,205 Tangible at service center X4 ,320 ,051 ,222 4,036 ,000 ,637 1,569 ,062 ,274 5,136 ,000 ,677 1,476 Infrastructure at service center X5 ,099 ,035 ,137 2,837 ,005 ,828 1,208 Assurance X6 ,194 ,050 ,211 3,913 ,000 ,664 1,505 a Dependent Variable : SatisfactionLevelY1 Model Summary Adjusted Model R a ,747a Predictors: R Std Error of Square the Estimate ,546 ,38040 R Square ,558 (Constant), Assurance X6, Infrastructure at service center Responsiveness X1, Tangible at service center X4, Empathy X3, Reliability X2 99 X5, ANOVAb Model Sum of df Mean Square F Sig ,000a Squares Regression 41,788 6,965 Residual 33,138 229 ,145 Total 74,926 235 a Predictors: (Constant), Assurance X6, 48,129 Infrastructure at service center X5, Responsiveness X1, Tangible at service center X4, Empathy X3, Reliability X2 b Dependent Variable: SatisfactionLevelY1 100 Appendix 9: REGRESSION ANALYSIS TABLE WITH SEX DUMMY VARIABLES Unstandardized Coefficients Model B Standardized Coefficients Std Error Collinearity Statistics t Bê-ta -,027 ,275 Sig Toleran ce (Constant) Responsiveness X1 -,100 ,921 ,105 ,054 ,105 1,964 ,051 ,673 1,485 Reliability X2 ,084 ,045 ,108 1,868 ,063 ,579 1,726 ,210 Empathy X3 Tangible at service center ,322 X4 ,051 ,227 4,111 ,000 ,633 1,581 ,062 ,276 5,171 ,000 ,676 1,478 Infrastructur e at service center X5 ,098 ,035 ,136 2,819 ,005 ,827 1,209 Assurance X6 ,189 ,050 ,205 3,783 ,000 ,657 1,522 SexZ ,052 ,051 ,046 1,032 ,303 ,960 1,042 a Dependent Variable: SatisfactionLevelY1 Model Summary Adjusted Model R ,748a R Square ,560 Std Error of R the Square Estimate ,546 ,38035 ANOVAb Model VIF Sum of Squares Regression 41,942 Residual 32,984 d Mean f Square 228 ,145 101 F 5,992 Sig 41,41 ,000a Total 74,926 235 a Predictors: (Constant), SexZ, Assurance X6, Infrastructure at service center X5, Responsiveness X1, Tangible at service center X4, Empathy X3, Reliability X2 b Dependent Variable: SatisfactionLevelY1 Appendix 10: REGRESSION ANALYSIS TABLE WITH AGE DUMMY VARIABLES Unstandardized Standardized Coefficients Coefficients Model t S i Tolerance VIF g B Std Error (Constant) ,006 ,276 (Constant) Responsiveness X1 ,099 ,053 ,099 1,857 ,065 ,682 1,467 ,090 ,045 ,116 2,019 ,045 ,590 1,695 Reliability X2 ,205 ,051 ,222 4,026 ,000 ,637 1,570 ,320 ,062 ,274 5,125 ,000 ,677 1,476 ,035 ,137 2,826 ,005 ,825 1,212 ,050 ,211 3,902 ,000 ,664 1,507 ,050 ,000 ,003 ,998 ,994 1,006 Empathy X3 Tangible at service center ,099 X4 Infrastructure ,194 at service center X5 Age Z a Dependent Variable: ,000 Bê-ta Collinearity Statistics ,020 ,984 SatisfactionLevelY1 102 Model Summary Adjusted Model R R Std Error of R the Square Estimate Square ,747a ,558 ,544 ,38124 a Predictors: (Constant), Age Z, Assurance X6, Infrastructure at service center X5, Responsiveness X1, Tangible at service center X4, Empathy X3, Reliability X2 ANOVAb Model Sum of d Squares f Mean Square Regression 41,788 5,970 Residual 33,138 228 ,145 Total 74,926 235 F Sig 41,07 ,000a a Predictors: (Constant), Age Z, Assurance X6, Infrastructure at service center X5, Responsiveness X1, Tangible at service center X4, Empathy X3, Reliability X2 b Dependent Variable: SatisfactionLevelY1 103 ... increase customer satisfaction H3: Increase of empathy will increase customer satisfaction H4: Increase of assurance will increase customer satisfaction H5: Increase of investment in tangible material... that is higher than expected will create loyalty to customers 24 1.3.2 The European Customer Satisfaction Index Figure The European Customer Satisfaction Index European Customer Satisfaction Index... solution accordingly to maintain or improve customer satisfaction when using service at Sony Service Center 13 Thesis outline: Besides this introduction part, the thesis is divided into main chapters: