UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Nguyen Thi Tuyet Hong RELATIONSHIPS BETWEEN SERVICE PERSONAL VALUES, SERVICE ATTRIBUTES AND CUSTOMER SATISFACTION: A STUDY OF RESTAURANT SERVICES IN VIETNAM MASTER OF BUSINESS (BY HONOUR) Ho Chi Minh City – Year 2012 RELATIONSHIPS BETWEEN SERVICE PERSONAL VALUES, SERVICE ATTRIBUTES AND CUSTOMER SATISFACTION: A STUDY OF RESTAURANT SERVICES IN VIETNAM BY NGUYEN THI TUYET HONG SUPERVISOR Dr. PHAM NGOC THUY UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Nguyen Thi Tuyet Hong RELATIONSHIPS BETWEEN SERVICE PERSONAL VALUES, SERVICE ATTRIBUTES AND CUSTOMER SATISFACTION: A STUDY OF RESTAURANT SERVICES IN VIETNAM ID: 60340102 MASTER OF BUSINESS (by Honour) SUPERVISOR: DR. PHAM NGOC THUY Ho Chi Minh City - 2012 ii ACKNOWLEDGEMENTS I would like to express my deeply sincere gratitude to my Supervisor, Dr. Pham Ngoc Thuy, for her valuable guidance and advice on effective method. Her professional research understanding helps me and my teammates recognize the research method thoroughly and we had experienced actual process and result recognition. Furthermore, I would like to express my gratitude to Dr. Pham Dinh Tho for his devotion and patience in supporting and following our Mbus2010 class regarding the study on benefits and useful management implication for our career by understanding and applying the business research method. Besides, I would like to thank to my colleagues in Campenon Saigon Builders who had supported me a lot during my thesis implementation. Another source of motivation I would like to thank is my classmates ISB Mbus2010 for a mutual support by sharing knowledge, guidance, spending valuable time and giving a truly friendship during our thesis implementation. And an honorable mention goes to my family, my friends and their colleagues for their understanding and helping me during my data collection as well as my thesis completion. Finally, I would like to send my best regards to all of those who kindly supported me during the data collection phase and the completion of this thesis. Ho Chi Minh City, Vietnam January 2 nd , 2013 Nguyen Thi Tuyet Hong iii ABSTRACT The purpose of this research is to empirically investigate the relationships of service personal values, service attributes and customer satisfaction in using a service. The empirical setting is implemented in the buffet restaurant services in an emerging economy of Vietnam particularly in Ho Chi Minh City, the biggest and the hub of variety of buffets. The findings of this study reveal that Vietnamese customers who place the Social Value, the Personal Value, the Price and Quality of Food are the factors impact on Customer Satisfaction towards using buffets. Customers consider Social Value factor affecting their satisfaction towards using buffets by having a favorable attitude toward the social recognition, the social status and the more stimulating and adventurous life. Additionally, customers perceive that buffet make them feel the Social Value, a higher integration in the group, a better relationship and their friendship relationships strengthening. This result indicated that customers considered buffet where they could be more connected, informed and active with the social recognition and integration. Moreover, the Personal Value factor with positive impact to customer satisfaction tells that customers feel more tranquility, more family security, more harmony and stability in life as well as a more pleasurable life when using buffets. With regards to most of service and goods purchase, the Price is always an important factor affecting customer satisfaction when they compare the value of money paid and the value received from that transaction. A service served well with reasonable price was always attractive to customers. Out of the factors of service attribute than Price of service, this study also found that customers chose buffets also concerned about the Quality of food rather than other service attributes. The significant, direct relationships between the Quality of Food and Customer Satisfaction reveal that customers in Vietnam market presently place more concern on the quality of product or service value iv they receive. This result also contributes to the literature review of studies in foodservice that quality of food is always an important factor to improve the customer satisfaction towards a foodservice. Key words: service personal values, service attributes, customer satisfaction v TABLE OF CONTENTS CHAPTER 1: INTRODUCTION 1 1.1. RESEARCH BACKGROUND 1 1.2. PROBLEM DEFINITION 2 1.3. RESEARCH QUESTIONS AND OBJECTIVES 3 1.4. SIGNIFICANCE OF THE RESEARCH 4 1.5. RESEARCH SCOPE 4 1.6. RESEARCH METHODOLOGY AND RESEARCH DESIGN 4 1.7. LIMITATION 5 1.8. THESIS STRUCTURE 5 CHAPTER 2: LITERATURE REVIEW AND CONCEPTUAL MODEL 6 2.1. DEFINITION RELATED TO RESTAURANT SERVICES 7 2.1.1 Casual dining 7 2.1.2 Fine dining 8 2.1.3 Fast food 8 2.1.4 Buffets 8 2.1.5 The difference between table service and buffet service 9 2.2. SERVICE ATTRIBUTES 9 2.2.1 Price of service 10 2.2.2 Quality/taste of food 11 2.2.3 Variety of food 11 2.2.4 Servicescapes 11 2.3. SERVICE PERSONAL VALUES 13 2.4. CUSTOMER SATISFACTION 14 2.5. CONCEPTUAL MODEL 16 2.6. HYPOTHESES 16 2.6.1 The relationship between service attributes and customer satisfaction 16 2.6.2 The relationship between service personal values and customer satisfaction 17 vi CHAPTER 3: RESEARCH METHODOLOGY 18 3.1. RESEARCH PROCESS 19 3.2. QUALITATIVE STUDY 21 3.3. QUANTITATIVE STUDY 22 3.3.1 Construction of measurement scales 22 3.3.1.1 Measurement scale of Perceived Price 22 3.3.1.2 Measurement scale of Quality/ Taste of food 23 3.3.1.3 Measurement scale of Variety of food 24 3.3.1.4 Measurement scale of Servicescapes 25 3.3.1.5 Measurement scale of Service Personal Value to Peaceful Life 27 3.3.1.6 Measurement scale of Service Personal Value to Social Recognition 27 3.3.1.7 Measurement scale of Service Personal Value to Social Integration 28 3.3.1.8 Measurement scale of Customer Satisfaction 28 3.3.2 Questionnaire design 28 3.3.3 Sampling method and sample size 29 3.3.4 Data collection 30 3.3.5 Data analysis method 30 3.3.5.1 Reliability Analysis by Cronbach’s Alpha 30 3.3.5.2 Exploratory Factor Analysis 30 3.3.5.3 Multiple Regression Analysis 31 CHAPTER 4: RESULTS OF DATA ANALYSIS AND DISCUSSION 32 4.1. SAMPLE DESCRIPTION 32 4.1.1 Name of buffet restaurant respondents used to experienced 32 4.1.2 Cost of buffet respondents used to have 33 4.1.3 The accompanied people that respondents used to have buffets with34 4.1.4 The profession, gender and age of respondents 34 4.2. RELIABILITY ANALYSIS OF MEASUREMENT SCALES 35 4.2.1 Reliability analysis result of measurement scale of Perceived Price35 4.2.2 Reliability analysis result of measurement scale of Quality of Food36 vii 4.2.3 Reliability analysis result of measurement scale of Variety of Food37 4.2.4 Reliability analysis result of measurement scale of Servicescape to Venue Aesthetics 37 4.2.5 Reliability analysis result of measurement scale of Servicescape to Accessibility 38 4.2.6 Reliability analysis result of measurement scale of Servicescape to Restaurant Cleanliness 39 4.2.7 Reliability analysis result of measurement scale of Service Personal Value to Peaceful Life 39 4.2.8 Reliability analysis result of measurement scale of Service Personal Value to Social Recognition 40 4.2.9 Reliability analysis result of measurement scale of Service Personal Value to Social Integration 41 4.2.10 Reliability analysis result of measurement scale of Customer Satisfaction 41 4.3. EXPLORATORY FACTOR ANALYSIS 42 4.3.1 EFA for group of predictors 42 4.3.2 EFA for group of items of Customer Satisfaction measurement scale 44 4.4. MULTIPLE REGRESSION ANALYSIS 44 4.4.1 Revised Conceptual Model 46 4.4.2 Multiple Regression Testing Assumptions 47 4.4.1.1 Multicollinearity 47 4.4.1.2 Normality and Linearity 48 4.4.3 Multiple Regression Analysis 48 4.4.4 Testing the Hypothesis 1: relationship between the Price and Customer Satisfaction 50 4.4.5 Testing the Hypothesis 2: relationship between the Quality of Food and Customer Satisfaction 50 4.4.6 Testing the Hypothesis 3: relationship between the Variety of Food and Customer Satisfaction 50 viii 4.4.7 Testing the Hypothesis 4: relationship between the Servicescape to Accessibility and Cleanliness and Customer Satisfaction 51 4.4.8 Testing the Hypothesis 5: relationship between the Servicescape to Venue Aesthetics and Customer Satisfaction 51 4.4.9 Testing the Hypothesis 6: relationship between the Personal Value and Customer Satisfaction 52 4.4.10 Testing the Hypothesis 7: relationship between the Social Value and Customer Satisfaction 52 4.5. DISCUSSION 53 CHAPTER 5: CONCLUSION AND MANAGERIAL IMPLICATION 56 5.1. CONCLUSION 56 5.2. MANAGERIAL IMPLICATION 57 5.3. LIMITATION 59 REFERENCES 60 APPENDICES APPENDIX 1 – SURVEY FORM APPENDIX 2 - RESULTS OF CRONBACH’S ANPHA APPENDIX 3 - RESULTS OF EFA APPENDIX 4 - RESULTS OF MULTIPLE REGRESSION ix LIST OF TABLES Table 1: Measurement scale of Perceived Price 23 Table 2: Measurement scale of Quality of Food 24 Table 3: Measurement scale of Variety of Food 24 Table 4: Measurement scale of Servicescapes 26 Table 5: Measurement scale of Service Value to Peaceful Life (SVPL) 27 Table 6: Measurement scale of Service Value to Social Recognition (SVSR) 27 Table 7: Measurement scale of Service Value to Social Integration (SVSI) 28 Table 8: Measurement scale of Customer Satisfaction 28 Table 9: Cronbach’s Anpha of scale of Perceived Price 36 Table 10: Cronbach’s Anpha of scale of Quality of Food 37 Table 11: Cronbach’s Anpha of scale of Food Variety 37 Table 12: Cronbach’s Anpha of scale of Servicescape to Venue Aesthetics 38 Table 13: Cronbach’s Anpha of scale of Servicescape to Accessibility 39 Table 14: Cronbach’s Anpha of scale of Servicescape to Cleanliness 39 Table 15: Cronbach’s Anpha of scale of Service Value to Peaceful Life 40 Table 16: Cronbach’s Anpha of scale of Service Value to Social Recognition 41 Table 17: Cronbach’s Anpha of scale of Service Value to Social Integration 41 Table 18: Cronbach’s Anpha of scale of Customer Satisfaction 42 Table 19: EFA result of predictors 43 Table 20: EFA result of Customer Satisfaction 45 Table 21: Pearson Correlation Result 49 Table 22: Results of Multiple Regression Analysis 50 [...]... restaurant services including: 2.1.1 Casual dining A casual dining restaurant is a restaurant that serves moderately-priced food in a casual atmosphere Except for buffet-style restaurants, casual dining restaurants typically provide table service Casual dining comprises a market segment between fast food establishments and fine dining restaurants This is kind of table service served to the customer' s table... the relationships of service personal values, service attributes and customer satisfaction in using a service The empirical setting is implemented in the buffet restaurant services in an emerging economy of Vietnam particularly in Ho Chi Minh City, the biggest and the hub of variety of buffet services This research is aiming to answer the following questions: 1 What are the determinants of service attributes. .. theoretical background adaptable to the context The actual market demand to understand the determinants affecting customer satisfaction are critical The conceptual model was constructed in combination of theory and actual characteristics of customers using buffets in Ho Chi Minh City The data collected will be validated by Cronbach Anpha Reliability Analysis and selected by Exploratory Factor Analysis Finally,... wide range of factors and the understanding of key factors impacting the customer satisfaction is important This understanding will enhance the restaurateurs adopting to get advantages in a race In keeping updated with customer s trend in demand, not only the service quality but also the service attributes and service personal values are considered highly impacts In recent empirical findings, the service. .. customers are buying an experience or performance and the services are all about value creation which comes from a variety of valuecreating elements rather than transfer of ownership (Understanding the nature of service products and markets, p.6, 7) Restaurant is a kind of consumer services Restaurants are classified based on some criteria such as menu style, preparation methods and pricing Auty (1992)... that most of foodservices are offering the same services, the managers must pay more attention to what the updated trends and important factors are affecting the customers in order to adapt and have strategies to provide the services accordingly to customers’ satisfaction and taking more advantages in comparison with the competitors 1.2 PROBLEM DEFINITION Customer is more being offered a variety of choices... satisfaction of self-enjoyment The customer is demanding higher quality of services and considering many others attributes before deciding to choose a service or to re-purchase a service In keeping with the line of customer demands, the foodservice managers need to that the foodservice managers needs to understand well customer s demand in order to attract customers, retain customers In a market that... (Parasuraman et al., 1994, Dabholkar, 1995, Shemwell et al., 1998, cited in Sureshchandar et al., 2002) Harington et al (2010) cited that the critical factors determining restaurant customers’ repeat visits include food quality, appropriate cost and attentive service (Gupta et al., 2007) with taste and presentation as important aspects of consumer satisfaction (Namkung and Jang, 2007) Consumers also... nature of tangible actions One of the fastest growth foodservices is adapting the demand of consumers nowadays is the buffet restaurant which is developing in quantity and variation kinds of services in Ho Chi Minh City especially in centre districts Not only the classified hotels and restaurants but also the private sector of restaurant business is offering a variety of buffet services ... leisure service settings, conceptualized servicescape as multidimensional, comprised of facility aesthetics, layout accessibility and cleanliness 2.3 SERVICE PERSONAL VALUES Service personal values can be defined as a customer s overall assessment of the use of a service based on the perception of what is achieved in terms of his own personal values” (Lages & Fernandes, 2005) In the hospitality industry . the classification. The main forms of restaurant services including: 2.1.1 Casual dining A casual dining restaurant is a restaurant that serves moderately-priced food in a casual atmosphere quantity of service offering and the formation of services. The main function of a restaurant is to provide food and beverages with a high quality of food, professional services and an attractive. restaurants, casual dining restaurants typically provide table service. Casual dining comprises a market segment between fast food establishments and fine dining restaurants. This is kind of