Factors affecting customer satisfaction in gr satake vietnam company

MEIHO UNIVERSITY Graduate Institute of Business and Management MASTERS THESIS Factors affecting Customer Satisfaction in GR Satake Vietnam Company In partial fulfillment of the requirements for the degree of Masters of Business Administration Advisor: Dr Kuo-Hung Tseng Co-advisor: Dr Pham Xuan Giang Graduate Student: Ngo Thanh Tuan December, 2010 ACKNOWLEDGEMENTS First, I would like to express my gratitude to the Board of management of Ho Chi Minh City University of industry and Meiho University, Taiwan who has enablled me to participate in Master programs, Graduate Institute of Business and Management in the past two years I feel thankful to Prof & Dr Kuo-Hung Tseng, Chair of College of Business and Management, Meiho University, Taiwan Although I’m very busy with daily work but my advisor and guiding professors cared about, supported and encouraged me very much from the first step to identify the title,.write draft of the fundamental, find references, design, revise the draft of the thesis I express heartfelt thank to the other professors and teachers who haved joined teaching and making task of administration and have created good condition for me to complete this training program To thank teachers, lecturers of Postgraduate Program, Department of Business Administration, Ho Chi Minh City University of Industry and my EMBA2 classmates Sincerely thank you I Factors affecting Customer Satisfaction in GR Satake Vietnam Company ABSTRACT In recent years, the processing industry and rice export of Vietnam have grown constantly and become one of the largest rice exports in the world Annual export volume of this country is more than million tons/year The most notable is the output of rice exports of Vietnam in 2009, which was over million tons However, export volume has increased but export prices not increase and neither is the quality of rice exports of this country This situation is worse than the countries in the region, especially such as Thailand and Cambodia The companies which supply the machines for processing and rice millers in Vietnam, has striked the Satake MTV Engineering Limited Liability Company(GRSV for short) with the machinery provided by Japanese Satake corporations and the financial support from the GR corporation of Hong Kong It is supported that, the GRSV Company has gradually developed and dominated the market In three years of establishment, the company's main product is the color separation machine (optical sorter) received the trust of the great majority of the large rice processing plant in the whole country Revenue in 2009 was estimated at million USD and this is not a small achievement for a company just entering the Vietnam market The purpose of this thesis was to assess customer’s satisfaction with the GRSV company after a period use of products supplied by the GRSV company Thereby, the researcher measured customer’s satisfaction on the products supplied by the company Results showed that there were six factors including: product quality and price, the tangible and convenience, reliability, empathy, competence and trustworthiness of the company, availability and customer’s feedback II Factors affecting Customer Satisfaction in GR Satake Vietnam Company Contents ACKNOWLEDGEMENTS I ABSTRACT II Contents III Tables V Figures VI Chapter1 Introduction 1.1 Introduce Satake Group, GR Engineering Ld Group and GR Satake Vietnam Company 1.1.1 Satake group 1.1.2 GR Engineering Ld group (Hong Kong) 1.1.3 GR Satake VietNam company - the technology company with limited responsibility 1.1.4 The main products of company 1.2 Research Background and Research Motivation 1.3 Research Purpose 1.4 Research Outcome 1.5 Subjects of Study 1.6 Layout of Thesis: the Thesis is divided into Chapters 1.7 List of Abbreviations Chapter Literature Review 2.1 Definition of Customer Satisfaction and Why Must Make Customers Satisfy 2.1.1 Definition of customer satisfaction 2.1.2 Why customer satisfy 2.1.3 The necessity of measuring demand and customer satisfaction 10 2.1.4 Model of customer’s satisfaction in services 11 2.2 Theories and Models of Satisfaction 12 2.2.1 Definition 12 2.2.2 Some models of customer satisfaction 13 2.3 Building a Research Model 19 III 2.4 Hypotheses 20 Chapter Research Methodology 21 3.1 Research Methodology 21 3.2 Identify Information to be collected 21 3.3 Identify Sources to Collect Information 22 3.4 Prototyping 22 3.5 Description of the Questionnaire Scales 23 3.6 Planning Data Collection 23 3.7 Model 24 3.8 Implementation Steps 24 Chapter Research Results Analysis 25 4.1 Descriptive Statistics 25 4.1.1 Characteristics of the respondents 25 4.1.2 Measurement Results of Research variables 27 4.2 Reliability 44 Chapter Conclusion and Suggestions 48 5.1 Conclusion 48 5.1.1 Reliability has a positive effect on the customer satisfaction 48 5.1.2 Feedback between the company and the customer has a positive effect on the customer satisfaction 48 5.1.3 Service capacity has a positive effect on the customer satisfaction 48 5.2 Suggestion 49 References 50 Attachment 51 IV Tables Table 4-1 Respondent’s Demographics 26 Table 4-2 Descriptive Analysis for Thirty–three of the Questionnaire 27 Table 4-3 Mean and Deviation of Reliability 28 Table 4-4 Mean and Standard Deviation of Feedback 34 Table 4-5 Mean and Standard Deviation of Service Capacity 39 Table 4-6 Mean and Standard Deviation of the Tangible 41 Table 4-7 Mean and Standard Deviation of the Quality of the Products 43 Table 4-8 Mean and Standard Deviation of Prices and Others 44 Table 4-9 Cronbach’s Alpha of the Questionnaire Items 45 Table 4-10 Cronbach’s Alpha of Constructs 46 V Figures Figure 1-1 The Satake Group in the World Figure 1-2 The Satake Factory in Japan Figure 1-3 The Satake Factory in China Figure 1-4 The GR Satake Vietnam Company in Viet Nam Figure 1-5 The Document of Equipments Used in Laboratory Figure 2-1 Model of Customers Satisfaction in USA 11 Figure 2-2 Kano Model (1984) 13 Figure 2-3 The Model Satisfies Customer Relations Functions of Parasuraman 1994 14 Figure 2-4 Theoretical Model of Customer Satisfaction Index of VN 17 Figure 2-5 Model Research 19 Figure 4-3-1 Do What the Company Promised 29 Figure 4-3-2 Notify When the Contact is Done and the Time Transferred 30 Figure 4-3-3 Support Seriously and Rapidly When Being Requested 31 Figure 4-3-4 High Skill and Enthusiastic in Their Work 32 Figure 4-3-5 Trust in Company’s Introduction and Quality 33 Figure 4-3-6 Quality of Machinery are as in the Signed Contact 34 Figure 4-4-1 Inform the Exact Time of Delivery 35 Figure 4-4-2 Willing to Help the Customers 36 Figure 4-4-3 Install, Operate and Direct as Appointments 36 Figure 4-4-4 Enthusiastic to meet the Requirement of the Customers 37 Figure 4-4-5 Not Wait for a Long Time on Delivery and Installation 38 Figure 4-4-6 Always Listens to the Customer’s Comments and Solves Problems 39 Figure 4-5-1 Staffs Make the Customers Feel Reliable 40 Figure 4-5-2 Qualification Always Satisfy the Customers 41 Figure 4-6-1 Good Designed with Properly Pattern (Colors, Style…) 42 Figure 4-6-2 Support When the Customers Necessary after Using Products 43 VI Factors affecting Customer Satisfaction in GR Satake Vietnam Company Chapter1 Introduction 1.1 Introduce Satake Group, GR Engineering Ld Group and GR Satake Vietnam Company 1.1.1 Satake group Satake is a global and professional group which produces and delivery kinds of machines, agricultural and industrial devices that manufacture food, rice, coffee, cereal Now, Satake Group export their productions over 140 countries, those productions are used widely in the overseas factories, at the same time, the quality and efficiency of those productions are checked in the international environment Japan is the headquarters of the Satake group The branch firms and producing factories are distributed in many countries of the world, such as Canada, British, The United States, Brazil, Autralia, and so on Withal, Satake has representative offices in Thailand, China, India, Myanmar Figure 1-1 The Satake Group in the World 4.1.2.13 Reliable about “the staffs make the customers feel reliable” Count Staff make you feel reliable Disagree 49 Col % 32.7% Neutral 42 28.0% Agree 30 20.0% Strongly Agree 18 12.0% Strongly Disagree 11 7.3% Figure 4-5-1 Staffs Make the Customers Feel Reliable As we can see in the figure 4-5-1 about the factor “staff make the customers feel reliable”, there are 48 people agree and strongly agree, accounting for 32% (20% agree and 12% strongly agree) 40% are disagree and strongly disagree (32.7% disagree and 7.3 strongly disagree) The rest of customers neutral are 28% The ressult seems that the staffs of the company don’t make the customers feel reliable The customers are disagree and strongly disagree very high (40%) 40 4.1.2.14 Reliable about “qualification always satisfy the customers” Count Qualifications always satisfy you Agree 53 Col % 35.3% Strongly Agree 42 28.0% Disagree 27 18.0% Neutral 25 16.7% 2.0% Strongly Disagree Figure 4-5-2 Qualification Always Satisfy the Customers Qualification is one of the factors make the customers satisfied There are 95 customers say that they are satisfied for the qualification of the company’s staffs, accounting for 63.3% (35.3% agree and 28% strongly agree) 20% are disagree and strongly disagree 16.7% are neutral The survey result says that the customers are satisfied about the staff’s qualification and it has a high rate (63.3%) Table 4-6 Mean and Standard Deviation of the Tangible The Tangible Good designed with properly pattern (colors, style ) Engineering staff are neat and nice Employees regularly contact with you Support you when necessary after using Products 41 N 150 150 150 150 Mean Std Deviation 3.60 1.099 3.11 1.156 3.28 1.210 3.03 1.117 Table 4-6 shows the attitude of the customers about the product of the company In results the factor “Good designed with properly pattern colors, style ” is the highest level of Mean Next the “Employees regularly contact with you” and the “Support you when necessary after using Products” is the lowest level of Mean in The Tangible It shows that the customers really satisfy about the products of the company, especially about the design of the products, good designed (colors, styles…) The customers have high identified the factors in The Tangible and they really satisfy about the company’s products 4.1.2.15 Reliable about "well designed with properly pattern (colors, style…)" Count Good designed with properly pattern (colors, style ) Agree 57 Col % 38.0% Strongly Agree 34 22.7% Disagree 29 19.3% Neutral 27 18.0% 2.0% Strongly Disagree Figure 4-6-1 Good Designed with Properly Pattern (Colors, Style…) Figure 4-6-1 shows that there are a high rate of customers agree and strongly agree about the factor “The company has a good designed with properly pattern” (91 people among 150 people), accounting for 60.7% (38% agree and 22.7% strongly agree) 42 There are only 21.3% disagree and strongly disagree (19.3% disagree and 2% strongly disagree) The rest of 18% are neutral The customers are really satisfied about the company’s product and this is a good thing for company 4.1.2.16 Reliable about “support when the customers necessary after using products” Count Support you when necessary after using Products Agree 57 Col % 38.0% Neutral 48 32.0% Strongly Disagree 23 15.3% Disagree 17 11.3% 3.3% Strongly Agree Figure 4-6-2 Support When the Customers Necessary after Using Products Being in time or supporting when the customers necessary is very important It shows that the company is not only sell the product but also care about the customers Through the survey result about the factor “support when the customers necessary after using products” we can see that 41.3% customers are agree and strongly agree 26.6% are disagree and strongly disagree and 32% are neutral The result seems that the customers are less satisfied about this factor; only 41.3% agree and strongly agree Table 4-7 Mean and Standard Deviation of the Quality of the Products The Quality of Products The Operation of machinery is easy and fast Designer colors is in harmony with the plant's space Made in place as in the signed contract The quality of machinery is as in the signed contract The products are as in the signed contract The recoverability of equipment are as in the signed contract Machinery is easy to operate and maintain N Mean Std Deviation 150 3.72 1.259 150 2.54 0.910 150 3.55 1.097 150 2.71 0.870 150 3.00 0.803 150 2.95 1.134 150 3.23 1.155 Table 4-7 shows that in seven items of The Quality of Products, “The Operation of machinery is easy and fast” is the highest level of the Mean (3.72), next the “Made in place as in the signed contract” is the second highest level of Mean (3.55) “Designer 43 color is in harmony with the plant's space” and “The quality of machinery is as in the signed contract” are the two lowest level of Mean (2.54 and 2.71) The result seems that the customers have high review about the company’s products, they agree about the operation of machinery is easy and fast and this is a competition advantage for company Table 4-8 Mean and Standard Deviation of Prices and Others Prices and Others Machine is qualified with reasonable prices you'll come to our company when you need Will introduce products of our company with your friends Your satisfaction with our company N Mean Std Deviation 150 2.88 1.093 150 3.09 1.093 150 3.26 0.629 150 3.22 0.759 The factor “Will introduce products of our company with your friends” is the highest level of Mean among four items in prices and others (3.26), next the “Your satisfaction with our company” is the second highest level of Mean (3.26) The lowest level of Mean is “Machine is qualified with reasonable prices” (2.88) 4.2 Reliability SPSS version 15 was used to calculate the Cronbach’s alpha of the total items and the constructs in this research Table 4-9 presents the Cronbach’s alpha of thirty – three items in the questionnaire from the customers, which ranged from 0.30 to 0.73 It meant all the items of the questionnaire were well to reflect their constructs The researcher could conduct the survey 44 Table 4-9 Cronbach’s Alpha of the Questionnaire Items Variables Which product are you using You are aware of our company through Position Education level Sex Age Contact immediately upon request Notify when the contract is done and the time transferred Do what they promised Delivered in time as shown in the contract Support seriously and rapidly when being requested Highly skilled and enthusiastic in their work Trust company's introduction and quality Quality of machinery are as in the signed contract Inform the exact time of delivery Willing to help you Install, operate and guide as appointments Enthusiastic to meet the requirements of you Not wait for a long time on delivery and installation Always listen to your comments and solve problems quickly Staff make you feel reliable Always polite and courteous Qualifications always satisfy you Always be in time and quickly solve problem Good designed with properly pattern (colors, style ) Engineering staff are neat and nice Employees regularly contact with you Support you when necessary after using Products The Operation of machinery is easy and fast Designer colors is in harmony with the plant's space Made in place as in the signed contract The quality of machinery is as in the signed contract The products are as in the signed contract The recoverability of equipment are as in the signed contract Machinery is easy to operate and maintain Machine is qualified with reasonable prices you'll come to our company when you need Will introduce products of our company with your friends Your satisfaction with our company 45 Corrected Item-Total Correlation 0.31 0.45 0.73 0.35 0.45 0.39 0.46 0.30 0.43 0.30 0.35 0.43 0.39 0.64 0.43 0.30 0.34 0.40 0.33 0.30 0.41 0.61 0.50 0.50 0.51 0.39 0.39 0.46 0.40 0.35 0.61 0.39 0.43 0.54 0.36 0.30 0.49 0.53 0.67 Table 4-10 below shows the detailed Cronbach’s alpha of thirty – three items construct in the questionnaire Table 4-10 Cronbach’s Alpha of Constructs Variables Which product are you using You are aware of our company through Position Education level Sex Age Contact immediately upon request Notify when the contract is done and the time transferred Do what they promised Delivered in time as shown in the contract Support seriously and rapidly when being requested Highly skilled and enthusiastic in their work Trust company's introduction and quality Quality of machinery are as in the signed contract Inform the exact time of delivery Willing to help you Install, operate and guide as appointments Enthusiastic to meet the requirements of you Not wait for a long time on delivery and installation Always listen to your comments and solve problems quickly Staff make you feel reliable Always polite and courteous Qualifications always satisfy you Always be in time and quickly solve problem Good designed with properly pattern (colors, style ) Engineering staff are neat and nice Employees regularly contact with you Support you when necessary after using Products The Operation of machinery is easy and fast Designer colors is in harmony with the plant's space Made in place as in the signed contract The quality of machinery is as in the signed contract The products are as in the signed contract The recoverability of equipment are as in the signed contract Machinery is easy to operate and maintain Machine is qualified with reasonable prices you'll come to our company when you need Will introduce products of our company with your friends Your satisfaction with our company 46 Cronbach's Alpha 0.83 0.83 0.85 0.85 0.83 0.84 0.82 0.83 0.83 0.83 0.83 0.83 0.83 0.82 0.83 0.83 0.84 0.83 0.83 0.83 0.83 0.82 0.82 0.82 0.82 0.83 0.83 0.82 0.83 0.83 0.82 0.83 0.83 0.84 0.83 0.83 0.83 0.83 0.82 As a result, all measures in the table 4-10 were acceptable and reliable It allowed the researcher to conduct the surveyand might ensure the confidence of the survey 47 Chapter Conclusion and Suggestions The purpose of this chapter was to present conclusions to the research objectives and research hypothesis, managerial implication suggestion, limitations future research 5.1 Conclusion This study investigated customers’ attitude toward the products and the staffs of the Satake company From the conceptual viewpoint, the study further examined some relationship as illustrated in the research framework Using statistics analysis, the researcher obtained the following conclusions: 5.1.1 Reliability has a positive effect on the customer satisfaction With 65% variance in customer satisfaction of reliability explained by “doing what the company promised or trust in company’s introduction and quality” directly affects customer satisfaction 5.1.2 Feedback between the company and the customer has a positive effect on the customer satisfaction Through the table 4–4, we can prove that there are a contact between the company and the customer The company gives information about the products to customer and receives the customer’s feedback It really helps the company to understand the customer This result was the customer’s satisfaction explained by willing to help the customer or always listen to the customer’s comment and solve problems quickly 5.1.3 Service capacity has a positive effect on the customer satisfaction Through the process to finish this thesis, the author finds that improving the quality of the rice exports of Viet Nam is very important The production of the guideline amount was inappropriate Surviving and developing without any way must improve productive technology and change the production from the old habit This thesis also confirmed the general satisfaction of customers for Satake’s company is quite high The company needs to maintain this strength and develop further Customer’s satisfaction factors have not only product quality and price but also the tangible factors and using ability, ready factor and customer’s responsiveness 48 5.2 Suggestion Overall, when analyzing and bring out models of customer’s satisfaction for Satake’s company give us much information Factors impact strong on customer’s satisfaction is the tangible and convenient which were measured by the variables: ƒ Machinery Equipment for company have a nice designed ƒ Clothes of the engineer staff are neat and beautiful ƒ Employees of the company in regular contact to support the customers when they need Machinery, equipment are process that determine the quality of the product Machines are designed beautiful, easy to operate and use It will makes the workers who use machines feel comfortable, especially ease the pressure of working and complete assigned tasks Professional working style, high competition will makes the customers trust in company In the variable of this strong impact if the company improves designs and quality of the product because it will makes the customers satisfied more and more The next, impact factor and customer’s satisfaction is the quality and the price factor which is measured though the following variables: ƒ Operating machinery, equipment very easy and fast ƒ Productivity and quality of machinery and equipment are right as in the signed contact ƒ Ability to recovery of machine and equipment are right as the signed contact ƒ Machinery and equipment operate and maintain easily This factor affects to customer’s satisfaction, ultimately The customer’s responsiveness was measured by the following variables: ƒ Employees notice the time of delivery machinery and equipment ƒ The customers don’t have to wait a long time to receive goods and installing the machinery and equipment ƒ The engineers team install, operate and manual machinery as appointments ƒ Always listen the customer’s comments and solve problems quickly There are more and more competitions inside and outside the industry The company needs to pay attention to the two impacting factors of customer’s satisfaction including the quality and the price of the products 49 References Aaker, D.A (1991) Managing brand equity NY: the free press Aaker, D.A (1996) Building strong brands NY: the free press Babakus, Emin, Bienstock, Carol C, Van Scotter, James R Linking Perceived quality and customer satisfaction to store traffic and revenue growth Decision Sciences, Fall 2004 Bloemer J M M & Lemmink (1992 The importance of customer satisfaction in explaining brand and Dealer loyalty Market segmentation Working paper, August 06/200608/11 Cheverton P (2002) How come your Brand isn’t working hard enough Kogan page Ltd Cheverton P (2006) Understand Brands Kogan page Clifton R and Simmons J (2003), Brand and Branding, profile books Ltd Kotler, Brown, Adam, Armstrong (1991) Marketing 5th edition Prentice Hall Kotler P (1994) Marketing Managerment Prentice – Hall, Englewwod Cliffs, New Jersey Kotler, P (2000) Manager Managerment: Analysis, Planning, Implementation and control (10th ed.) NJ: Prentice – Hall, Englewwod Cliffs Kotler P, Waldemar Pfoertsch (2006) B2BBrand Managerment Springer Berlin –b Heidelberg Nguyen, T & Nguyen T M T, Brand equity and it’s antecedence in Vietnam Market Oliver, R L (1997) Satisfaction: A Behavioral Perspective on the customer New York: McGraw – Hill II Vietnamese Tien Phong online ( 20 August, 2009) Lam trai nam lieu bay lo moi hao, Retrieved 5th seop, 2009 at www.satake.com 50 Attachment QUESTIONAIRES Dear Participant, I am a graduate student of class EMBA2-a joint graduate program between University of Industry Ho Chi Minh City and University of Meiho, Taiwan I am now doing a study on factors that influences on the satisfaction of customers of the GR Satake Company Viet Nam In order to give our customers the best service and also serve the purpose of research, I hope to receive your opinions and feedbacks through this questionnaires so that our company could meet your requirements better As for me as well as the company, all of the comments are useful and there is no wrong answer Each of your answers will help me and our company much in the way of development Would you please like give the extent of your agreement by circling the appropriate levels according to the following guidelines: Strongly Disagree Neutral Agree Disagree Strongly Agree RELIABILITY Company’s employees contact with you immediately upon request Employees notify you when the contract is done and the time of equipment transferred The company all that they promise Machines were delivered in time as shown in the contract 5 Employees give support seriously and rapidly when being requested Engineering staff are highly skilled and enthusiastic in their work You trust in the company's introduction on the features and quality of machinery Quality of machinery are as in the signed contract 51 FEEDBACK Employees inform you the exact time of delivery of machinery and equipment All of the staff are willing to help you Team of engineers install, operate and guide machinery as appointments Engineering staff are enthusiastic to meet the requirements of you 5 You not have to wait for a long time on delivery and installation of machinery and equipment The company always listen to your comments and quickly solve your problems SERVICE CAPACITY: The attitude of the business and engineering staff make you feel reliable Company staff are always polite and courteous Qualifications of the employees in the company always satisfy you Always be in time and quickly solve any problems for you according to the company's motto THE TANGIBLE Machinery of the company is well designed with properly pattern (colors, style ) Costumes of engineering staff are neat and nice Employees regularly contact with you After using the product, company staff regularly contact to support you when necessary 52 QUALITY OF PRODUCTS The Operation of machinery is easy and fast Designer colors is in harmony with the plant's space Machinery and equipment are made in place as in the signed contract The quality of machinery is as in the signed contract 5 The productivity of machinery and equipment are as in the signed contract The recoverability of equipment are as in the signed contract Machinery is easy to operate and maintain PRICES AND OTHERS Machine is qualified with reasonable prices When you need to invest in machinery and equipment, you'll come to our company If there is a chance, you will introduce products of our company with your friends Your satisfaction with our company Personal information: Personal information (used for classification and statistic purpose, all comments will be insecured) Which product are you using: a Optical Sorter (GS11760AIS) b Whitener c Polisher d Packing weight e Other You are aware of our company through: a Newspapers b Advertising on TV c Friends d Others 53 Position : a Director b Vice Director c Manager d Technical chief e Others Education level : a Master b Undergraduate c College d Intermediate e Others Sex : Male Female Age : a 20 -30 b 31-40 c 41-50 d > 50 Thank you very much for spending time on answering this questionnaire Wishing you happiness, health and success 54 ... the Customers Necessary after Using Products 43 VI Factors affecting Customer Satisfaction in GR Satake Vietnam Company Chapter1 Introduction 1.1 Introduce Satake Group, GR Engineering Ld Group... Chapter1 Introduction 1.1 Introduce Satake Group, GR Engineering Ld Group and GR Satake Vietnam Company 1.1.1 Satake group 1.1.2 GR Engineering Ld group... Business Administration, Ho Chi Minh City University of Industry and my EMBA2 classmates Sincerely thank you I Factors affecting Customer Satisfaction in GR Satake Vietnam Company ABSTRACT In