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TABLE OF CONTENT ABSTRACT i ACKNOWLEDGMENTS ii TABLE OF CONTENT iii LIST OF FIGURE v LIST OF TABLE vi CHAPTER 1: INTRODUCTION 1 1.1. Research background 1 1.2. Research motives 1 1.3. Research objective 3 1.4. Research questions 3 1.5. Research procedure 4 CHAPTER 2: LITERATURE REVIEW 5 2.1. Service and tourist product 5 2.1.1. Service definition 5 2.1.2. Tourist product 6 2.2. Service quality and tourist destination quality 8 2.2.1. Service quality 8 2.2.2. Tourist destination quality 11 2.3. Service quality models 12 2.3.1. Perceived service quality model 12 2.3.2. SERVQUAL Model 13 2.3.3. SERVPERF Model 14 2.3.4. HOLSAT Model 15 2.3.5. Model of Narayan, Rajendran Gopalan for measuring service quality in tourism 17 2.4. Customer satisfaction 18 2.4.1. Customer satisfaction in general 18 2.4.2. Customer satisfaction in tourism 20 2.5. Studies on the relationship between service quality and customer satisfaction 22 2.5.1. Overview of studies in various industries 22 2.5.2. Studies in the tourism industry 24 CHAPTER 3: RESEARCH METHODOLOGY 25 3.1. Research model and hypotheses 25 3.2. Measurement 28 3.3. Data collection and analysis method 32 CHAPTER 4: ANALYSIS AND FINDINGS 36 4.1. Demographic analysis 36 4.2. Descriptive statistical analysis 39 4.2.1. Reliability analysis 39 4.2.2. Descriptive Analysis 44 4.2.3. ANOVA analysis 45 4.3. Pearson Correlation 50 4.4. Hypothesis testing 52 CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS 59 5.1. Conclusions 59 5.2. Recommendations 60 5.3. Limitations of the study 61 REFERENCES 63 Appendix 69 Survey on service quality and customer satisfaction 69 of Hanoi’s tourism 69 LIST OF FIGURE No Figure title Page 1 Figure 2.1: Framework of tourism offering by Lumsdon, 1997 8 2 Figure 2.2: Perceived service quality model 12 3 Figure 2.3: SERVQUAL model 14 4 Figure 2.4: The SERVPERF model 15 5 Figure 2.5: Holsat Model 16 6 Figure 2.6: Model of Narayan, Rajendran Gopalan for measuring service quality in tourism 17 7 Figure 2.7: Source of tourist’s dissatisfaction 21 8 Figure 2.8: Customer’s perception of service quality and customer satisfaction 23 9 Figure 3.1: Research model 27 LIST OF TABLE No Table’s title Page 1 Table 2.1: Some studies of the relationship between service quality and customer satisfaction 23 2 Table 3.1: Level of customers’ satisfaction with service quality 32 3 Table 3.2: Number of foreign visitors to Hanoi from 2008 to 2012 33 4 Table 3.3: Number of estimated foreign visitors to Hanoi in 2013 (only visitors who stay in hotel) 33 5 Table 4.1: Demographic information of respondents 36 6 Table 4.2: Nationality of respondents 38 7 Table 4.3: Cronbach’s Alpha of valiables 39 8 Table 4.4: Reliability score of the core tourism experience dimension 40 9 Table 4.5: Reliability score of the information dimension 41 10 Table 4.6: Reliability score of the hospitality dimension 41 11 Table 4.7: Reliability score of the fairness of price dimension 41 12 Table 4.8: Reliability score of the hygiene dimension 42 13 Table 4.9: Reliability score of the amenities dimension 42 14 Table 4.10: Reliability score of the value for money dimension 43 15 Table 4.11: Reliability score of the logistics dimension 43 16 Table 4.12: Reliability score of the food dimension 43 17 Table 4.13: Reliability score of the security dimension 44 18 Table 4.14: Descriptive Statistics 45 19 Table 4.15: Test of Homogeneity of Variances between age groups 46 20 Table 4.16: ANOVA between age groups 46 21 Table 4.17: Test of homogeneity of variance of gender groups 47 22 Table 4.18: ANOVA between gender groups 48 23 Table 4.19: Descriptive means between genders 49 24 Table 4.20: Pearson Correlation data 51 25 Table 4.21: Model Summary 52 26 Table 4.22: ANOVAb analysis 53 27 Table 4.23: Estimated Coefficientsa 53 28 Table 4.24: Hypothesis testing results 54 29 Table 4.25: Adjusted Model Summary 56 30 Table 4.26: ANOVAb analysis of Adjusted Model 57 31 Table 4.27: Estimated Coefficienta of Adjusted Model 57 CHAPTER 1: INTRODUCTION 1.1. Research background Nowadays, tourism market is more competitive than in the past. Because of the emergence of new tourist destinations and the increasingly role that tourists play, tourism industry has been turning to one of the fastest growing economic sectors in recent years. With the increased competition in tourism, tourist destinations need to create new strategies to gain a better competitive position and to increase the attractiveness related to other destinations. As many scholars pointed out, improving quality of tourist products, leading to higher customer satisfaction, is an important strategy that can attract more tourists to a destination. Zeithaml and Bitner (2003) define service quality as a global judgment or attitude relating to the superiority of a service. In determining the quality delivered to customers through the product or service and the accompanying services, customer satisfaction is the leading criteria that has been researched by many scholars (Vavra, 1997). According to Baker and Crompton (2000), satisfaction is the psychological and emotional conditions of personal experiences. Sweenty and Soutar (2001) regard consumer satisfaction as an emotional reaction to specific transactions which depended on the achievement of the expected products or services, on the consistency between the anticipatory reactions and the actual results. Based on the researches of many scholars in term of service quality, customer satisfaction at many tourist destinations in the world, many useful recommendations and solutions have been adopted and proved to have positive effect in increasing tourist service quality of these destinations.
Shu - Te University College of Management Graduate School of Business Administration Master A Study on the relationship between service quality and customer satisfaction in Hanoi’s tourism Student: Tran Hong Hanh Advisors: Dr Jau-Shyong Wang Dr Sheng-Jung Li Co-advisor: Dr Dao Thi Thu Giang May, 2014 Shu-Te University Graduate School of Business Administration Thesis A Study on the relationship between service quality and customer satisfaction in Hanoi’s tourism Tran Hong Hanh May, 2014 A Study on the relationship between service quality and customer satisfaction in Hanoi’s tourism Student: Tran Hong Hanh Advisor: Dr Jau-Shyong Wang Dr Sheng-Jung Li Co-Advisor: Dr Dao Thi Thu Giang A Thesis Submitted to the Graduate School of Business Administration College of Management Shu-Te University In Partial Fulfillment of the Requirements For the Degree of Master in Business Administration May, 2014 Graduate Student of Shu-Te University Recommendation Letter from Thesis Adviser This Student Tran Hong Hanh, whose thesis entitled “A Study on the relationship between service quality and customer satisfaction in Hanoi’s tourism”, is under my advisory and agree to submit for examination Adviser : Co-Adviser : : / / Date Graduate School of Business Administration, Shu-Te University A Study on the relationship between service quality and customer satisfaction in Hanoi’s tourism Student: Tran Hong Hanh Adviser: Dr Jau-Shyong Wang Co-adviser: Dr Dao Thi Thu Giang Dr Sheng-Jung Li ABSTRACT The main purpose of this study is to test the level of factors of service quality and the impact of them on customer satisfaction in Hanoi’s tourism The research method used in this study is quantitative method with multivariate statistical analysis steps such as: testing by Cronbach’s Alpha coefficient, explore descriptive analysis, correlation analysis, regression analysis From 206 valid answered questionnaires, the research results show that there are four main factors affecting tourist satisfaction including (1) core tourism experience, (2) fairness of price, (3) value for money, and (4) security In which, the factor “value for money” has biggest impact intensity, next is the factor “security”, “fairness of price” and the last is the factor “core tourism experience” Moreover, the research results also show conclusion, limitations as well as directions for further researches in the future Keywords: Customer Satisfaction, tourist satisfaction, tourist destination, SERVQUAL, SERVPERF i ACKNOWLEDGMENTS During the implementation of this thesis, I have received much help from the people who have helped me Without them I could not have completed this thesis, so I wanted to express my deep gratitude to those who helped me First, I would like to express our gratitude to the teachers of the University SHU-TE and the University of Foreign Trade who taught me and helped me throughout the course Special thanks to Dr Jau-Shyong Wang, Dr Sheng-Jung Li, University of SHU-TE and Dr Dao Thi Thu Giang, Vice President of Foreign Trade University who provided constant guidance and very useful advice for me to complete this thesis Next, I would like to thank to my classmates who share and help me during the study at the University of SHU-TE I also thank the colleagues in Department of Culture, Sports and Tourism who have helped me in the process of surveying and data collection in this thesis Finally I really thank my family and friends who have shared, encouraged me during the learning process and the implementation of this thesis Thank you very much Tran Hong Hanh MBA student, Shu-Te University ii TABLE OF CONTENT ABSTRACT i ACKNOWLEDGMENTS .ii TABLE OF CONTENT iii LIST OF FIGURE v LIST OF TABLE vi CHAPTER 1: INTRODUCTION .1 1.1 Research background 1.2 Research motives 1.3 Research objective 1.4 Research questions 1.5 Research procedure .4 CHAPTER 2: LITERATURE REVIEW .5 2.1 Service and tourist product 2.1.1 Service definition 2.1.2 Tourist product .6 2.2 Service quality and tourist destination quality 2.2.1 Service quality 2.2.2 Tourist destination quality 11 2.3 Service quality models 12 2.3.1 Perceived service quality model 12 2.3.2 SERVQUAL Model 13 2.3.3 SERVPERF Model 15 2.3.4 HOLSAT Model 15 2.3.5 Model of Narayan, Rajendran & Gopalan for measuring service quality in tourism 18 2.4 Customer satisfaction 19 2.4.1 Customer satisfaction in general 19 2.4.2 Customer satisfaction in tourism 21 iii 2.5 Studies on the relationship between service quality and customer satisfaction 23 2.5.1 Overview of studies in various industries .23 2.5.2 Studies in the tourism industry .25 CHAPTER 3: RESEARCH METHODOLOGY 26 3.1 Research model and hypotheses 26 3.2 Measurement 29 3.3 Data collection and analysis method 33 CHAPTER 4: ANALYSIS AND FINDINGS 36 4.1 Demographic analysis 36 4.2 Descriptive statistical analysis .40 4.2.1 Reliability analysis 40 4.2.2 Descriptive Analysis 44 4.2.3 ANOVA analysis 45 4.3 Pearson Correlation .51 4.4 Hypothesis testing .53 CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS 59 5.1 Conclusions 59 5.2 Recommendations .61 5.3 Limitations of the study .62 REFERENCES 63 Appendix 69 Survey on service quality and customer satisfaction .69 of Hanoi’s tourism 69 iv LIST OF FIGURE No Figure title Figure 2.1: Framework of tourism offering by Lumsdon, 1997 Figure 2.2: Perceived service quality model Figure 2.3: SERVQUAL model Figure 2.4: The SERVPERF model Figure 2.5: Holsat Model Figure 2.6: Model of Narayan, Rajendran & Gopalan for measuring service quality in tourism Figure 2.7: Source of tourist’s dissatisfaction Figure 2.8: Customer’s perception of service quality and customer satisfaction Figure 3.1: Research model Page 12 14 15 16 17 21 23 27 v H1 - f: There are positive relationships between 430 070 Not accepted amenities and tourist satisfaction H1 - g: There are positive relationships between 008 274 Accepted 359 076 Not value for money and tourist satisfaction H1 - h: There are positive relationships between accepted logistics and tourist satisfaction H1 - i: There are positive relationships between food 261 -.099 Not accepted and tourist satisfaction H1 - j: There are positive relationships between 013 225 Accepted security and tourist satisfaction The above table illustrates that tourist satisfaction does not have linear relationship with the factors including information, hospitality, hygiene, amenities, logistics and food (all sig > 0.05) Robustness check Because there are many internal relationships among independent variables, the sig or p value of some independent variables is still high In order to get more precise and robust regression results, the author will eliminate those variables which have no effect on dependent variable, which are information, hospitality, hygiene, amenities, logistics, and food The interdependent variables of the adjusted model are core-tourism experience, fairness of price, value for money and security, which have linear relationship with tourist satisfaction (sig < 0.05) Table 4.25: Adjusted Model Summary Model R R2 688a Adjusted R2 Std Error of the Estimate 473 462 639 56 a Predictors: (Constant), Security, Core tourism experience, Fairness of price, Value for money b Dependent Variable: Satisfaction Table 4.26: ANOVAb analysis of Adjusted Model Model Sum of df Mean F 44.667 Square 18.234 81.236 199 408 154.172 Regression squares 72.936 Sig 203 Residual Total 000a a Predictors: (Constant), Security, Core tourism experience, Fairness of price, Value for money b Dependent Variable: Satisfaction Table 4.27: Estimated Coefficienta of Adjusted Model Model Unstandardized Coefficients B Standardized Coefficients Std Error t Sig Beta (Constant) 573 237 Core tourism experience Fairness of price 062 079 189 Value for money Security Collinearity Statistics Tolerance VIF 2.415 017 057 785 014 507 1.973 085 165 2.234 027 483 2.070 383 111 322 3.460 001 305 3.275 241 086 231 2.813 005 393 2.542 57 Model Sum of df Mean F 44.667 Square 18.234 81.236 199 408 154.172 Regression squares 72.936 Sig 203 Residual Total 000a a Predictors: (Constant), Security, Core tourism experience, Fairness of price, Value for money b Dependent Variable: Satisfaction Table 4.27: Estimated Coefficienta of Adjusted Model Model Unstandardized Coefficients B Standardized Coefficients Std Error t Beta Sig Collinearity Statistics Tolerance VIF a Dependent Variable: Satisfaction The results from regression analysis help us define the following regression function: TS = 0.573 + 0.062S1 + 0.189S2 + 0.383S3 + 0.241S4 In which: TS: Tourist satisfaction S1: Core tourism experience S3: Value for money S2: Fairness of price S4: Security The above table illustrates that tourist satisfaction has a linear relationship with the factors including core tourism experience, fairness of price, value for money and security As the standardized β of them are greater than 0, so all four dimensions have positive relationship with tourist satisfaction Among them, the value for money dimension has biggest impact on tourist satisfaction with the highest standardized β at 0.322 (which mean if the level of satisfaction of value of money increases 1%, satisfaction of tourist increases 0.322) The 58 second factor that has a strong impact on tourist satisfaction is security (if security satisfaction level increases 1%, tourist satisfaction level increases 0.231) and the core tourism experience dimension has least impact on tourist satisfaction as its β is 0.057 As in the correlation analysis results, the independent variables have relationship with each other (correlation coefficient is greater than 0) it is a signal of multi-collinearity In this case, it can make t- and F-test become no longer effective, and then the regression function cannot exactly predict To test this, I use variance inflation factor (VIF), if VIF < 10 we can conclude that the multi-collinearity has no impact on regression results From the results of regression analysis, we see that observed VIF values are less than 10, so I can conclude that there is no multi-collinearity in the model CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS 5.1 Conclusions Hanoi is a good destination for foreign tourists to visit because of many reasons However, this city has not fully exploited its tourism capacity yet Beside the reputation of Hanoi 59 regarding the old quarter, traditional value and other activities, the tourism policy makers and managers should emphasize on providing better service quality to satisfy the needs of tourists in order to increase revisit intention In this study, the model proposed by Narayan, Rajendran & Gopalan using SERVPERF paradigm has been applied in designing the questionnaire The surveys were sent to 300 foreign tourists who stayed in Hanoi from 1st February to 31st March With 206 valid questionnaires, the data aims at determining the level of satisfaction of foreign tourist toward service quality in Hanoi To answer the research question about the applicability of SERVPERF model in Hanoi tourism context, the reliability coefficient and exploratory factor analysis are carried out The results depict that the 10 dimensions of service quality as following the theory of Narayan, Rajendran & Gopalan using SERVPERF paradigm get high Cronbachs’ Alpha, which means that they are of good or acceptable reliability Considering the research question about the link among service quality dimensions and tourist satisfaction, a regression analysis is carried out in which the dependent variable is tourist satisfaction and the independent variables are ten dimensions namely core-tourism experience, information, hospitality, fairness of price, hygiene, amenities, value for money, logistics, food, and security With regard to the research, the results indicate that there are four dimensions of service quality which are core tourism experience, fairness of price, value for money and security are significant antecedents of tourist satisfaction In particular, the value for money dimension has the strongest effect on customer satisfaction In other word, it can be assumed that foreign tourist to Hanoi regard “value for money” factor as an important service factor which a destination should provide In addition, foreign tourists also care about the security situation and the fairness of price at the Hanoi as these factors have positive relationships with their satisfaction Finally, one main component of tourism 60 product which is core tourism experience (natural beauty, facilities at tourist spot, leisure time in tour, ) has a positive effect on the satisfaction feeling of visitors 5.2 Recommendations Understanding how foreign tourists perceive service quality of a destination can benefit tourism policy makers and many service providers in this destination to improve service quality and increase revisit intention of visitors From the research, service quality is one of the key success factors that can encourage tourists’ satisfaction since Hanoi can improve core-tourism experience, fairness of price, value for money and security, which have positive relationships with tourist satisfaction Firstly, in order to improve the satisfaction of tourists about core-tourism experience, the government should have plans to reconstruct and decorate the sightseeing, leisure/recreational facilities at tourist spot There is a fact that almost tourist places in Hanoi are not invested to have attractive view and supported facilities although they all have historical and cultural meanings Moreover, tourist companies should recreate tours that can explore the capacity of many typical tourist spots in Hanoi and also can help visitors have relaxing leisure time In additional, the tourists examined price and value for money, thus setting the prices for hospitality, food, goods, and other related activities such as tour package, the fees at tourist spot or transportation fees should be reasonable Alternative facilities, fresh food and more value added service as well as higher serving skills are some solutions that make customers feel that the service are worthy One issue that foreign tourists complain about the cost in Hanoi is that there is still discrimination between the fees for local visitors and foreign visitors Therefore, reducing this gap can make them feel that they are treated fairly with local ones; leading to their purchases of more products or services at this tourist destination 61 The security matter is another one that Hanoi should improve if this destination wants to get better perception by foreign tourist The government should find the way to reduce the robbery activities at some locations that foreign tourists pass through such as tourist spots, nearby place of stays or restaurants that foreign visitors concern when they are in Hanoi Thus, improving the quality of transportation system can help foreign tourists increase their perception about security aspect of Hanoi 5.3 Limitations of the study This study partly has a positive contribution to the tourist service quality of Hanoi in terms of understanding the perception of foreign tourists about service quality and measuring their satisfaction of these services in the destination However, this research still has some limitations: • The study only uses questionnaires with close-ended questions for gathering data from tourists; therefore the survey cannot specify what aspects customers feel dissatisfied with service quality and some solutions that they can suggest for the policy makers like using open questions and in – depth interviews • Another limitation of this research is the difficulty in distributing the questionnaires to the foreign visitors because of some reasons: tourist companies not cooperate; visitors have their own business and not show interest to fill the questionnaires; it takes time and resource to collect questionnaires from visitors Therefore, among 300 survey forms which were passed to the respondents, only 206 can be used in the research As this study still has limitations then it needs future studies Vietnam has many tourist destinations such as Ho Chi Minh City, Nha Trang, Da Nang, etc… Researchers should investigate the factors in those areas that can be key success factors for tourism in order to 62 make foreign tourists feel impressed and want to revisit in the future Besides, the questionnaire of future studies can use open questions to know specifically what make customers satisfied The dimensions in further studies should be reduced to some important dimensions in the specific context of Vietnam that have relationships with tourist satisfaction REFERENCES [1] Abari, A A., Yarmohammadian , M H., & Esteki (2011) Assessment of quality of educational non-governmental university via Servqual model, rd World Conference on Education Science, Vol 15, 2299-2304 63 [2] Babakus, E & Boller, G W (1992) An empirical assessment of the Servqual scale Journal of Business 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Graduate School of Business Administration Thesis A Study on the relationship between service quality and customer satisfaction in Hanoi’s tourism Tran Hong Hanh May, 2014 A Study on the relationship. .. on the relationship between service quality and customer satisfaction in Hanoi’s tourism? ?? with a hope to give some assessment on the satisfaction and feeling of international customers about the. .. studying of the relation between customer satisfaction and service quality, the meaning and measurement of service quality and customer satisfaction was precisely researched Many scholars point