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VIETNAM NATIONAL UNIVERSITY HOCHIMINH CITY
INTERNATIONAL UNIVERSITY
SCHOOL OF BUSINESS
AN INVESTIGATION INTO CUSTOMER
SATISFACTION AND CUSTOMER LOYALTYON COFFEE PRODUCTS AND SERVICES
A CASE OF POREVOL COFFEE SHOP IN HCMC A thesis proposal
submitted to
the School of Business Administration
in partial fulfillment of the requirement of the Degree of BACHELOR OF
ART
Students Name: CAO XUAN TUNG- BAIU09174
Advisor: PhD. HO NHUT QUANG
HO CHI MINH CITY, February 2013
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AN INVESTIGATION INTO CUSTOMER
SATISFACTION AND CUSTOMER LOYALTYON COFFEE PRODUCTS AND SERVICES
A CASE OF POREVOL COFFEE SHOP IN HCMC
APPROVED BY: Advisor APPROVED BY: Committee,
________________________ ___________________________________
Ho Nhut Quang, PhD Ho Nhut Quang, PhD, Chair
___________________________________Vo Tuong Huan, Secretary
___________________________________H Thanh Phong, Assoc.Prof.
___________________________________ Nguyen Trung Thang, MBA
___________________________________
Nguyen Nhu Tung, MBA
THESIS COMMITTEE
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ACKNOWLEDGMENTS
During the time researching and processing the data to complete this thesis, I
faced a lot of problems and challenges. Therefore, it is pleasure for giving thankful to all
of the people who helped me to get the job done.
First of all, I would like to give a greatest gratitude to my supervisor, Mr. Ho
Nhut Quang for his kindness guidance and useful advices during the process.
Secondly, I want to give thankful to all of the staff in the International University
for helping me get the useful documents and materials that related to my topic.
I want to give my word of grateful to all of participants in the committee who
actually gives their comments and suggestions that helped me to improve my thesis.
Last but not least, I want to thank my family and my friends for their kindness
support during the time.
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TABLE OF CONTENTS
CHAPTER1: INTRODUCTION...................................................................................... 1
1.1 Background____________________________________________________1
1.2 Research problem statement_______________________________________2
1.3 Research question_______________________________________________3
1.4 Scope and limitation of the study___________________________________3
1.5 Research Objectives_____________________________________________3
1.6 Structure of the thesis____________________________________________3
CHAPTER II: LITERATURE REVIEW....................................................................... 5
2.1 General Concept____________________________________________5
2.2 Take-away coffee definition___________________________________5
2.3 Customer satisfaction, service quality and loyalty__________________5
2.4 Previous Study______________________________________________6
2.5 Service quality (SERVQUAL) model__________________________10
CHAPTER III: METHODOLOGY...............................................................................12
3.1 Research Approach_____________________________________________12
A. Research Strategy: Survey__________________________________12
B. Pilot test________________________________________________13
3.2 Quantitative research___________________________________________13
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3.3 Qualitative research____________________________________________14
3.4 Research Framework___________________________________________14
3.5 Conceptual Framework and Hypothesis_____________________________16
3.6 Questionnaire design____________________________________________17
3.7 Sampling_____________________________________________________24
3.8 Data collection________________________________________________25
a) Primary data_____________________________________________25
b) Secondary data___________________________________________25
3.9 Data analysis__________________________________________________25
a. Descriptive Statistic_______________________________________26
b. Reliable Data Analysis_____________________________________26
c. Factor Analysis___________________________________________26
d. Regression Analysis_______________________________________27
CHAPTER IV: DATA ANALYSIS AND DISCUSSION...........................................28
4.1 Sample Demographic___________________________________________28
4.2 Descriptive Statistic____________________________________________31
1. Tangibles________________________________________________31
2. Reliability_______________________________________________33
3. Responsiveness___________________________________________34
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A. Between 5 factors and customer satisfaction______________62
B. Between Customer Satisfaction and Loyalty______________64
C. Hypothesis Testing Result____________________________66
CHAPTER V: CONCLUSION AND RECOMMENDATION...................................67
5.1 Conclusion___________________________________________________67
5.2 Recommendation______________________________________________73
1. Implication for Porevol coffee shop___________________________73
A. Tangible__________________________________________73
B. Reliability_________________________________________74
C. Responsiveness_____________________________________74
D. Assurance_________________________________________74
E. Empathy__________________________________________74
2. Implication for further research______________________________74
APPENDIX........................................................................................................................76
QUESTIONNAIRE...........................................................................................................78
INTERVIEW (VIETNAMESE)........................................................................................87
INTERVIEW (ENGLISH).................................................................................................89
LIST OF REFERENCES...................................................................................................91
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LIST OF FIGURE
1. Figure II-1 Gronrooss Model____________________________________ 8 2. Figure II-2 Service quality: The six criteria of good service quality _____8
3. Figure II-3 Andreas H.Zins Model ________________________________ 9
4. Figure II-4 Frederick Model _____________________________________10
5. Figure II-5 SERVQUAL Model__________________________________ 11
6. Figure III-1 Research Framework________________________________ 14
7. Figure III-2 Conceptual Framework______________________________ 16
8. Figure IV-1 Number of respondents based on gender________________ 29
9. Figure IV-2 Number of respondents based on age___________________ 30
10. Figure IV-3 Number of respondents based on occupation____________ 31
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ABBREVIATION
ASS: Assurance
EMP: Empathy
RES: Responsiveness
REL: Reliability
TAN: Tangible
SERVQUAL: Service Quality Model
SATIS: Satisfaction
LOY: Loyalty
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ABSTRACT
This thesis is conducted with the purpose to measure the factors affectcustomer satisfaction and customer loyalty of take away coffee model business toward
Porevol coffee shop in Ho Chi Minh City. The main problem that should be done in this
study is that customers they are satisfied and become loyalty with service quality of
Porevol coffee shop or not. The findings of this research are extremely important for the
operator and staffs of the Porevol coffee shop. Not only that, it will show the relationship
between the service performance and customer satisfaction.
In this study, we will use both quantitative and qualitative to reach to thefeedback of the customers. It is survey method and interview in typically. The Service
Quality (SERVQUAL) model is the theoretical framework that was used to design the
questionnaire during the study.
After the study was done, the result shows that there is correlation between 5
factors of SERVQUAL model that are being used with customer satisfaction and
correlation between customer satisfaction and customer loyalty. But something still not
touches the customer insights and it reduced the customer satisfaction and customerloyalty. There are 5 factors in SERVQUAL model are tangible, reliability,
responsiveness, assurance and empathy were being used to measure the answers of the
customers. However, only three of them which are Responsiveness, Assurance and
Empathy could be the predictors of Customer Satisfaction.
In general, the customers who come to Porevol, they are likely satisfied with
the product and service of the coffee shop and would become loyalty. In particularly,
Porevol should continue to update and improve to satisfy customer much more.
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Since Porevol coffee shop is a brand new Take Away business model that has juarised in Vietnam market recently years, it is necessary and helpful for it to have a study
on customer satisfaction and customer loyalty, to detect any problems in the performance
of services as well as to find the current situation. That is also the reason why this
research paper is conducted.
1.2 Research problem statement
In competitive business environment, service quality could be seen as an important key
that decide whether gaining or losing your customers. Customers could come to your
business for many reason. It could be your amazing advertising or the attracting of youroutside looking; but without a great quality services, they will be no longer your loyal
customers.
In present condition, the amount of customers that come to Porevol coffee is lower than
the expected number compared in the fisrt five months. The problem that has to be done
here not only stabilize the amount of customers come in and out but also raise that
number. At the end of every week, a Boss of Porevol coffee shop he draw a line to
summerize the total of profit and number of their customers then he relized that it wentup in the first two months but went down in the third year and dramatically going up
again. In the first two months, the overage number of customer is about 1350, it is
reduced into 1165 in the next month but has raised again in the month later giving the
total of customer in the fourth month is nearly 1400. This unstable line show that the
loyalty of Porevols customers is not high. It is easy to understand because Porevol cofshop is a new born brand name in the big family of take-away coffee. But Porevol if they
want to survive, they not only have to gain more new customers but also keep their
loyalty. To do that, Porevol should understand the key insights of their customers. In
general, the purpose of this research through the case of Porevol coffee is studying about
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factors that affect the customers loyalty on coffee products and how to obtain these k points to satisfy the customers.
1.3 Research question
In this paper, the research question will be: What are the most important factors thatdirectly affect to customer satisfaction and indirectly affect the customer loyalty at
Porevol coffee shop?
1.4 Scope and limitation of the study
Because of the limitation of time and capital so that the research can not cover all Take-Away coffee s customers in Vietnam, it is limited within those customers of Porevcoffee in Ho Chi Minh City and the data gathered were analyzed with the qualitative and
quantitative research approaches with a limited sample. This study focuses on the
customers in Ho Chi Minh City only Secondary and Primary Data collected and used is
limited to period between 2011 and 2013.
1.5 Research Objectives
This thesis is conducted in order to measure and determine factors that affect the
customer satisfaction and customer loyalty of Porevol coffee shop. Furthermore, it will
help the company to improve its performance.
1.6 Structure of the thesis
This thesis is divided into 5 main parts. The significant contents of each part will be
illustrated as follow:
Introduction: General background of the research and stating research problem.
Literature review: This chapter presents details of the review of related studies. Allconcepts and definitions of the research objectives are represented with one subtopic in
the study for a clearer explanation of each variable of the research.
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Theoretical framework and Research methodology: Presenting an overview of theapproach used to conduct the research.
Data analysis and Discussions: Analyzing and discussing the results obtained fromcollected data.
Conclusions and Recommendation: Discussing the final results of the study andsuggestion for improvement .
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CHAPTER II
LITERATURE REVIEW
2.1 General Concept:
This chapter will cover somes of the previous data or related materials. A literature
review step helps researchers develop their own work based on previous data that have
done by others before. This tools is used to support the identification of a problem to
research and to illustrate that there is a gap in previous research which needs to be filled.
By definiton, literature review can be defined as the selection of available documents
(both published and unpublished) on the topic, which contain information, ideas, data and
evidence written from a particular standpoint to fulfil certain aims or express certain
views on the nature of the topic and how it is to be investigated, and the effective
evaluation of these documents in relation to the research being proposed. (Hart, 1998: 13)
2.2 Take away coffee definition:
It is defined by dictionary; take away means moving from a place into a new locatior states. With the same meaning, the term take away coffe describes an action that thcustomers come to the coffee shop to buy cup of coffee but they will enjoy it in another
place. Customers when they come to Porevol Coffee Shop, they would be attracted by
cool menu design with variety of products and they could chose whether enjoy to drink
there or take it to another place. This business model allows customers to be more
flexible on time.
2.3 Customer Satisfaction, service quality and loyalty:
To be successful, organizations must try to satisfy their customers. The customersatisfaction is an important key f actor in formation of customers desires for future
purchase (Mittal & Kamakura, 2001). Furthermore, the satisfied customers will probably
talk to others about their good experiences. This fact, where the social life has been
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shaped in a way that social communication with other people enhances the society, is
more important (Jamal & Naser, 2002). The relationship between performance and
customer expectation could be the most two important items that lead to Customer
Satisfaction.
Customer satisfaction surv eys can be a good way to know about your customers insightand characteristics. form a clear concept of your demographic. You can find our your
customers age, gender, occupation and feedbacks from them in order to improve yo products, service performance as well as your marketing strategies for the final result is
customer satisfaction and customer loyalty.
The surveys are valuable sources of information as they show what is important to ourcustomers and suggest where and what we need to improve. We will base on all of the
customers feedback about your service and product to satisfy them.That is the reason why many researchers and academicians have continuously
emphasized on the importance of customer satisfaction. When you achieve this key
concept, you this will lead you to sucess in customer loyalty field. Many service
organizations have developed customer loyalty programs as a part of relations
development activities. Customer loyalty is a further concept. Based on Oxford
Dictionary, loyalty is defined as a state of true to allegiance. But the mere repeated
purchase by customers has been mixed with the above mentioned definition of loyalty. In
service domain, loyalty has been defined in an extensi ve form as observed behaviours(Bloemer, 1999). Caruana (2002) argues that behaviour is a full expression of loyalty to
the brand and not just thoughts.
For all points of view above, Customer Satisfaction and Customer Loyalty have been
considered as the most important keys to help the company to increase the profitability,
market share and return on investment (Nadiri and Hussain, 2005, page 471).
2.4 Previous Studies:
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Some studies have been conducted for measuring the relation between customersatisfaction, customer loyalty and service quality. Following are the previous research
that related to this topic.
Table II-1 Related Studies
Author(s) Topic
K.Ravichandran, B.Tamil Mani, S.Arun
Kumar, S. Prabhakaran (2010)
Influence of service quality on customer
satisfaction- Application of Servqual
Model
Achmad H. Sutawidjaya, Tuti W,Suharyanti (2012)
The influence of Service quality oncustomer satisfaction ( Study in Starbuck
coffee- Indonesia)
Andhika Galih Pinanditha (2012) The study relationship between service
quality & customer loyalty for two
selected restaurant outlet: McDonald &
Starbucks Coffee
Jeff King (2011) Loyal customers, brand advocates, whatsthe difference?
Natalie Abel (2009) Determinants of customer loyalty in the
specialty coffee industry: the differences
between customer loyalty to an
independent coffee shop and Starbucks
Natalie Abels Model
This model defines customer loyalty in the specialty coffee industry and differentiation
between loyalty to an independent coffee shop and loyalty to Starbucks.
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Figure II-1.
Gronrooss Model
Many experts perceive the service in different ways. One of those experts who definesservice quality is Cristian Gronroos (1982), according to the quality of service perceived
by customers will be different.
Gronroos argued that service quality as perceived by customers can be divided into
technical quality and functional quality as the following figure:
Figure II-2- Service quality: The six criteria of good service quality
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Source: Gronroos, C.(1988): Review of Business Vol. 9 No 3, p.12
Based on those literature review and related materials, all the factors can be summarized
in the upon model. These factors from that model were used as criteria to evaluate
decision making of customers on purchasing Porevol coffee shop with loyalty following.
Andreas H.Zins ModelFigure II-3
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Source: Andreas H. Zins, (2001) "Relative attitudes and commitment in customer loyalty
models: Some experiences in the commercial airline industry", International Journal of
Service Industry Management, Vol. 12 Iss: 3, pp.269 294
This model of Andreas could show the relationship between perceived quality,
customer satisfaction and customer loyalty.
Frederick Model
Figure II-4
Service-Profit Model
According to Kane and Freeman in 1997, among those factors that affect service quality
above, employees performance could be the keys for increasing the customer satisfaction.
2.5 Service quality (SERVQUAL) model:
SERVQUAL model (Parasuraman et al,1985) was built up with the
purpose to measure the service quality that could help the organization improving
their performance.
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According to Parasuraman and Zeithaml on 1990, we could compare the
customers expectations and their perceptions of actual performance by using this
model. Servqual scale contents 5 dimensions by the following: Tangibles Reliability Responsiveness Assurance Empathy
Figure II-5 SERVQUAL Model
TANGIBLES
RELIABILITY
RESPONSIVENESS
ASSURANCE
EMPATHY
SERVICE QUALITY
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CHAPTER III
METHODOLOGY
This chapter presents the method adopted in this research in achieving all the research
objectives and answering the research questions. Objectives of Research Methodology
Descriptive research, also known as statistical research; describe data and characteristics
about the population or phenomenon being studied. An exploratory research could beseen as a tool to conduct a problem that has not been clearly defined before. It could help
researcher to determine the research design, target population and data collection.
3.1 Research Approach:
In this research paper, the study will employ quantitative methods since it is the best way
to collect the data for customer satisfaction that tends to investigate business related
notion in a practical concept. In addition, the qualitative method is also been used in this
study. The research will be based on 2 types of date resources: secondary data and
primary data.
A. Research strategy: Survey
A reserch strategy could be defined as a plan of action that gives direction to your effort,
how to answer the research questions and enabling you to conduct research
systematically rather than haphazardly.
The main research strategies are experiment, survey, case study, theories or action
research (Saunder et al 2000, 2007; Malhotra and Birks, 2007)
In this process, we conduct a survey with the pupose to collect data that seek acharacteristic of a target population. For the purposes of this study, we use questionaire to
evalutate the customer satisfaction and customer loyalty of Porevol coffee in Ho Chi
Minh City.
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B. Pilot test
This test is the first step when you begin to gather the data. Pilot testing could be
understood as your trial run with the purpose to detect any weakness or problems in
design.
In this research, pilot test will be conducted with the sample size of 10 people to test the
meaningfullness of the questions. Each person will be told the purposes of this research
for deeply understanding and then the questionaire will be give to each of them to receive
their feedback. After the test, the result showed that there is an evidence that this
questionaire got a good design, easy to understand, the items are relevant to the research.
3.2 Quantitative Research:
According to Cohen (1980), quantitative research is defined as social research that
employs empirical methods and empirical statements. He stated that an empirical
statement is defined as a descriptive statement about what should be in the case and how
it goes in the real world. Furthermore, an empirical statements are expressed in numerical
ways. Another factor that normally being in quantitative research is the empirical
evaluations. It is defined as a form that seeks to determine the degree for a specific
program or policy (in this case is the questionnaire) is empirically fulfills or not fulfill a
particular standard or norm.
In addition, Creswell (1994) has given a very concise definition of quantitative research
as a type of research that is `explaining phenomena by collecting numerical data that are
analyzed using mathematically based methods (in particular statistics).
Quantitative research attempts precise measurement of something. In the evaluation ofcustomer satisfaction, quantitative research is conducted to know how many people in a
population share the same characteristics. We could understand customer insight and
their perception about the service quality.
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3.3 Qualitative Research:
According to Denzin (1994), Qualitative researchers study things in their natural settings,
instead of numerous feedbacks, they focus into the quality of them to see whether or not
it makes sense and the degree of the right answers collected from the customers.
Qualitative research is intended for a deeper significance.
Using qualitative research methods, researchers will collect the information which
providing a detailed description of options and situations that are related to the topic. In
this case, interview is used. For those reasons above, qualitative method is depth and
detail.
3.4 Research Framework:
This research uses a mixture of qualitative and quantitative approach
Figure III-1. Research Framework
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Conclusion andRecommendations
Findings
Factors affect the
customers loyalty
Review the theories aboutand the previous studies.
Introduce the company
Develop Objective
Box of
Methodology
Secondary Data: Company record
Survey method
SPSS software
Quantitative & Qualitative
Collectsecondary
Descriptivestatistic
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3.5 Conceptual Framework and Hypothesis:
Figure III-2
H1: There is a possible impact of Tangibles on customer satisfaction.
H2: There is a possible impact of Reliability on customer satisfaction.
H3: There is a possible impact of Responsiveness on customer satisfaction.
Reliability (H2)
Empathy (H5)
Assurance (H4)
Responsiveness (H3)
CustomerLoyalty
Implied:
Sale IncreaseTangibles (H1)
Satisfaction
(H6)
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H4: There is a possible impact of Assurance on customer satisfaction.
H5: There is a possible impact of Empathy on customer satisfaction.
H6: There is a possible impact of Customer Satisfaction on customer loyalty.
3.6 Questionnaire design:
Questionnaire is designed base on Servqual Model. The purpose of questionnaire survey
is to develop empirical evidence of quality factors of Porevol coffee shop that areimportant and dir ectly affected to customers who are already bought Porevols productThe survey would be comprised of 3 parts. The first part contains questions about
respondents personal information (age, gender,etc.). The second part contains questioabout service quality based on Servqual scale. In addition, one more dimension is added
in this part to measure the overall customer satisfaction. And there would be an open-
ended question in the last part to receive idea of the customers in order to improve service
quality.
Questionnaire would be designed easily for all people to understand and answer the
questions correctly without any difference. All questions were close ended with the use of
a five point Likert scale or balanced rating scale consisted of strongly disagree to strongly
agree. In which, 1 is Strongly Disagree, 2 is Disagree, 3 is Neutral, 4 is Agree, and 5 is
Strongly Agree.
Table III-1 Measurement Scale
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Dimensions Code Question 1 2 3 4 5
Tangibles
Phng tin huhnh.
TAN1 Good location
V tr thu n l i.5points Likert Scale
TAN2 The product tasted is good.
Hng v sn phm ngon5points Likert Scale
TAN3 The menu is diversity and well
organized.
Menu th c ung a dng v bytr ph h p.
5points Likert Scale
TAN4 Free wifi
C tch h p wifi mi n ph5points Likert Scale
TAN5 Free parking
Ch u xe mi n ph5points Likert Scale
TAN6 Barista counter is always clean
and well- organized.
Quy pha ch lun lun s ch s
v b tr p mt.
5points Likert Scale
TAN7 Air- conditioners make
customers feel comfortable.
My lnh c trang b to cmgic tho i mi cho khch hng.
5points Likert Scale
TAN8 Modern machines are equipped
Qun c trang b my mchin i.
5points Likert Scale
TAN9 Employees can speak both 5points Likert Scale
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Vietnamese and English to
communicate with customers.
Nhn vin c th giao ti p bng
song ng c Ting Anh l n
Ting Vi t v i khch hng.TAN10 People can easy recognize the
logo and signboard of Porevol
coffee.
Khch c th d dng nh n ra
l g v b ng hiu ca Porevolcoffee.
5points Likert Scale
Reliability
tin cy
REL1 The employees are being
friendly, polite and truthful.
Nhn vin lun ha nh, l ch s
v ng tin cy.
5points Likert Scale
REL2 Perform services right in a
standard of time.
Thi gian lm 1 ly n c unghon tt trong 1 kho ng th igian cho php.
5points Likert Scale
REL3 Different payment options are
stated clearly.
Phng thc thanh ton khc
c s dng.
5points Likert Scale
REL4 Website is always available.
Trang web lun truy c p c/5points Likert Scale
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REL5 Maintaining efficiently product
and service quality of all time.
Duy tr hi u qu cht l ng sn phm v dich v mi lc.
5points Likert Scale
REL6 Employees have professional
knowledge to respond to the
customers when they need help.
Nhn vin c ki n thc chuyn
mn gip khch hng khi
h c thc mc.
5points Likert Scale
Responsiveness
p ng
RES1 Home delivery products are
timely respond.
Giao hng t n ni ng gi .
5points Likert Scale
RES2 Offer a convenient place for the
customers if asked.
H tr ch dn cho khch hngch ngi tt nu c yu c u.
5points Likert Scale
RES3 Quickly help customers to solve
problems.
Nhanh chng gip khchhng gi i quyt kh khan.
5points Likert Scale
RES4 Timely delivering products
directly to customers.
Khng b t khch hng i lukhi yu c u dng.
5points Likert Scale
RES5 Friendly asking detail of order 5points Likert Scale
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and happy to receive feedback
from the customers.
Hi mt cch than thi n khi
khch hng ch n mn v vui v
nhn phn hi t khch hng.
RES6 Guiding the customers in a
enthusiasm way.
Ch dn khch hng m t cch
nhit tnh.
5points Likert Scale
RES7 Assist the customers in takingorder if they need help.
H tr khch hng g i mn khicn thit.
5points Likert Scale
Assurance
m bo
ASS1 Ensure the products are within
expiry period.
Bo m cht l ng sn phmkhng qu h n s dng.
5points Likert Scale
ASS2 The security policy is accessible.
An ninh t t.
5points Likert Scale
ASS3 Good reputation.
C danh ti ng tt trong kinh
doanh.
5points Likert Scale
ASS4 Personal information of
customers is secured.
Thng tin c nhn c a khch
hng c bo mt.
5points Likert Scale
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ASS5 A customer platform is provided
for exchange of ideas.
C hm th gp nhn phnhi ca khch hng.
5points Likert Scale
ASS6 Employees always show
friendly attitude and
professional serving.
Nhn vin lun c thi phcv thn thi n v c chuyn mn
cao.
5points Likert Scale
Empathy
ng cm
EMP1 Sincerity and patience in
resolving customerscomplaints/problems.
Kin nh n v thnh th t khi gi i
quyt cc ph n nh c a khch
hng.
5points Likert Scale
EMP2 Understand customers needs. Hiu c khch hng.
5points Likert Scale
EMP3 Employees show no
discrimination among
customers.
Nhn vin khng phn bi t
khch hng ( ai n tr c phc
v tr c)
5points Likert Scale
EMP4 Caring the customers in special
day. (Birthday, womens day,5points Likert Scale
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research need to receive is fluctuated from 267 to307 people. In this research, 384
customers of the Porevol Coffee shop would be asked to do the questionnaire randomly
(probability sampling method). The questionnaire is given from 10:00 AM to 20:00 PM
because most of the customers come to Porevol Coffee shop at this time.
3.8 Data collection:
a)
Primary data:Observation: This technique is employed to observe 384 customers of Porevol coffee
shop to know their expectation for improving in product quality, service quality and
employees attitude. Literature Review: some of the related theories and researches would be reviewed to
support for completing the primary framework of the study.
b) Secondary data:
All the information from the literature review that contents related materials getting fromwebsite, magazine and T.V would be considered.
Articles : Collect data based on the related articles about improving product quality,
service quality and employees attitude, which are collected throughout the internet. Thenwe study the data more to deeply understand current working trend.
3.9 Data Analysis:
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After all of the data is collected, we come up with the analysis phase. This process
is aimed to evaluate, summarize and rearrange the data. For quantitative method, the
analysis of the answers of questionnaire will be undertaken using Statistical Package for
Social Science (SPSS) software.
a. Descriptive Statistic:
SPSS descriptive statistics are designed to come up with the information about the
variables distribution. This software allows you to complete a number of statistical
procedures such as: Central tendency measurement, measure of variability around themean and deviation from normality.
b. Reliable Data Analysis:
According to Carmines and Zeller in 1979, The same result that appeared fromexisting research could be a worry thing for researchers because it make the data become
unreliable. It could be understood in a different way that the result is reliable when ttest is done from a different times and population that has not been mention before.
The most useful tool that could be applied in this phase to test the reliability is
Cronbachs Alpha which was developed in 1951. Based on this method, to havreliability, Cronbachs Alpha should approximately tending to 0.8 and larger than 0.6.
c. Factor Analysis:
Cronbach and Meehl (1955) indicated that "No matter the criterion of the subject
is accepted or not, an validation testing must be conducted in order to measure the quality
of the items. It is said again about this thing by Carmines and Zeller (1979). The wordconstruct in this term refers to an action that describe the aspect of human behavior (Van
Dalen, 1979). The validation approach was built with the purpose to measure the scale of
application of the items.
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In addition, Varimax rotation also being used to maximize the variance of the
squared loading of a factors on all the variables by extracted factor.
d. Regression Analysis:
Regression analysis is a mathematical and statistical techniques used to estimate
the relation between one or more dependent variables with one or more independent
variables. This technique could explain the situation that typical value of the dependent
variable changes when some of the independent variables is varied and some others are
fixed.
In this research, linear regression will be used for calculating.
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Chapter IV
DATA ANALYSIS AND DISCUSSION
In this research, I used the SPSS software version 20 to analyze all the collected data.
4.1 SAMPLE DEMOGRAPHIC:
Demographic data are the characteristic of human population. In this research, the
demographic questions are design based on gender, age and occupation of respondents so
that we can found the target customer of Porevol coffee shop. By using this tool, different
opinion would be compared as well.
Among 384 questionnaire distributed, 300 responses were collected and all of
them are valid for this research paper. In this sample population, there was 59%
respondents is female and the remaining part is male.
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Figure IV-1 Number of respondents based on gender
Porevol coffee do business in beverage field, their products are suitable foreveryone at every age. But Porevol coffee they want to know their potential customers,
therefore there is an evidence that age statistic should be considered in the questionnaire.
As a result, the most amount of customers that come to Porevol coffee shop is from 22 to
25 years old.
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Figure IV-2: Number of respondents based on age
Now we come up with the working field to see clearer about the characteristic of
customers that come to Porevol coffee. In contrast, pupils or students share a largest
proportion in buying Porevols products (63%).
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Figure IV-3 Number of respondents based on occupation.
4.2 DESCRIPTIVE STATISTIC:
Descriptive statistic is the phase that are used to describe the main features of
collected data. In this research, the index of Mean and Standard deviation are used
with the purpose to evaluate the distribution of sample population. The lower the
standard deviation is, the closer of data point to the mean.
1. Tangible
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Tangible dimensions are related to any visual contact of customers to the coffee
shop whereas service and product design are the main points.
Table IV-1 Tangible Descriptive Statistic
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
TAN1-Good Location 300 1 4 3.76 .609TAN2-The Productasted is
good300 1 5 3.74 .611
TAN3-The menu is diversity
and well- organized300 1 5 3.73 .632
TAN4-Free Wifi 300 1 5 3.72 .709
TAN5-Free Parking 300 1 5 3.75 .614
TAN6-Barista counter is
always clean and well-
organized
300 1 5 3.82 .665
TAN7-Air-Conditioners makecustomers feel comfortable
300 1 5 3.75 .676
TAN8-Modern machines are
equipped300 1 5 3.74 .709
TAN9-Employees can speak
both Vietnamese and English
to communicate with
customers
300 1 5 3.71 .665
TAN10-People can easy
recognize the logo and
signboard of Porevol coffee
300 1 5 3.61 .748
Valid N (listwise) 300
Average 3.733
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As you can see from the table above that all ten elements of tangible dimension
get the acceptable average of mean is 3.733 compared to maximum is 5 and those
means dont fluctuate much. The mean range from 3.61 to 3.82 could bacceptable to show that Porevol coffee shop gain partly positive impression of
customers.
The element TAN6 is the one that has largest mean with 3.82. This could show
that customers who come to Porevol coffee, most of them are attracted of the
Barista Counter because it is clean and well-organized.
The element TAN10 has the smallest index of mean with 3.61. This could give anevident that customers they are not easy to realize the logo and signboard of
Porevol coffee.
2. Reliability
Reliability dimensions could be used as a tool to measure the performance of
Porevol coffee shop. In other words, reliability dimensions could show whether
the performance of Porevol coffee is truthful or not.
Table IV-2 Reliability Descriptive Statistics
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
REL1- The employees are
being friendly, polite and
truthful
300 1 5 3.65 .811
REL2-Perform services right ina standard of time
300 1 5 3.74 .800
REL3-Different payment
options are stated clearly300 1 5 3.61 .707
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Descriptive Statistics
N Minimum Maximum Mean Std. DeviationRES1-Home delivery products
are timely respond300 1 5 3.75 .635
RES2-Offer a convenient place
for the customers if asked300 2 5 4.01 .657
RES3-Quickly help customers
to solve problems300 1 5 3.84 .674
RES4-Timely delivering
products directly to customers300 1 5 3.92 .776
RES5-Friendly asking detail of
order and happy to receive
feedback from the customers
300 1 5 3.64 .739
RES6-Guiding the customers
in a enthusiasm way300 1 5 3.87 .649
RES7-Assist the customers in
taking order if they need help300 1 5 4.01 .808
Valid N (listwise) 300
Average 3.86
With the higher average of mean 3.86 compared to two mentioned dimensions
above, responsiveness give a better number. It shows that customers they feel
likely more satisfy in this field.
The two items RES2 and RES7 give the same mean highest point at 4.01. It
means that respondents feedback give agree to strongly agree about Offer convenient place for customers if asked and Assist the customers in takinorder if they need help respectively for RES2 and RES7.
The lowest score is for RES5 Friendly asking detail of order and happy toreceive feedback from the customers. This could show that customers they dnot really satisfy when they have some complains or making suggestions because
of unhappy attitude of the staffs.
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4. Assurance
Assurance dimensions give an explanation about how customers feel toward their
personal information, security. That level is showed by the following table:
Table IV-4 Assurance Descriptive Statistics
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
ASS1-Ensure the products are
within expiry period300 3 5 4.07 .345
ASS2-The security policy is
accessible300 3 5 4.01 .356
ASS3-Good Reputation 300 3 5 3.81 .496
ASS4-Personal information of
customers are secured300 3 5 3.86 .409
ASS5-A customer platform is
provided for exchange ideas300 2 33 2.64 1.839
ASS6-Employees always show
friendly attitude and
professional serving
300 3 5 3.92 .371
Valid N (listwise) 300
Average 3.72
Compared to the average mean is 3.72, two items ASS1 and ASS2 have the
highest point with 4.07 and 4.01 respectively. It shows that customers they really
feel safe and satisfy about quality of products and security policy of Porevol
coffee shop.
Item ASS5 has the lowest score with 2.64, it shows that mostly feedback of
customers about this item are strongly disagreed and disagreed.
5. Empathy
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Customers perception about how Porevol coffee shop give their attention tcustomers and take care of them could be described by the following table:
Table IV-5 Empathy Descriptive Statistics
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
EMP1-Sincerity and patience
in resolving customer's
complains or problems
300 1 5 3.82 .682
EMP2-Understand the
customer's need 300 2 5 3.99 .448
EMP3-Employees show no
discrimination among
customers
300 1 5 3.91 .697
EMP4-Caring the customers in
special day. (Birthday,
women's day, lunar new year,
etc.)
300 1 5 4.04 .531
EMP5-Giving promotion and
grateful to customers especially
customers who have member
or V.I.P card
300 1 4 3.82 .431
Valid N (listwise) 300
Average 3.916
With the high rate of average level is 3.916 compared to maximum is 5, this
numbers show that in general, most of customers they really feel satisfy and
happy with this dimension.
The highest score is for item EMP4 with 4.04. It could tell us that Porevol coffee
they really take care of their customers by making events in special days.
6. Customer Satisfaction
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This dimensions give an overall view about how customer feel satisfy with
Porevol coffee shop.
Table IV-6 Satisfaction Descriptive Statistics
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
SATIS1-In general, I feel
satisfy with product quality of
Porevol cofee
300 1 5 4.02 .696
SATIS2-I feel satisfy with the
attitude of the staffs of Porevolcoffee
300 1 5 4.07 .673
SATIS3-I feel satisfy with the
service quality of Porevol
coffee
300 1 5 4.05 .702
SATIS4-I fell satisfy with the
equippments of Porevol coffee300 1 5 3.86 .691
Valid N (listwise) 300
Average 4
A happy new for Porevol coffee that they have special perception of customers.With the average number of mean is 4, Porevol coffee should feel happy because
they likely touch customer insights.
7. Customer loyalty
This dimension could answer the question is that Do customers would beloyalty?
Table IV-7 Customer Loyalty Descriptive Statistics
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Descriptive Statistics
N Minimum Maximum Mean Std. DeviationLOY1-I will continue going to
this coffee shop in near future300 3 5 4.12 .496
LOY2-I will introduce this
coffee shop to my family and
friends
300 3 5 4.12 .421
LOY3-I consider Porevol
coffee is my first choice when I
want to go to coffee shop
300 1 5 3.97 .614
Valid N (listwise) 300
Average 4.01
It is easy to understand that customer likely express their loyalty for Porevol
coffee because the satisfaction level seems to be high. The average number of
mean in this tab is 4.07 with the same level of item LOY1 and LOY2 is 4.01,
giving the promises of customers to continue to go to Porevol coffee and also
introduce to their family and friends.
4.3 RELIABILITY TEST:
In this part, we will use Cronbachs alpha in order to measure the consistency of tdata. Cronbachs alpha lies in the interval between 0.6 and 0.7 is acceptable reliabiliand higher 0.8 indicates good reliability.
1. Tangibles
Table IV- 8 Cronbachs Alp ha of Tangible
Reliability Statistics
Cronbach's Alpha N of Items
.897 10
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Table IV-9 Item- Total Statistics of Tangibles
Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Cronbach's Alpha
if Item Deleted
TAN1-Good Location 33.56 18.475 .783 .878
TAN2-The Productasted is
good33.58 18.419 .790 .877
TAN3-The menu is diversity
and well- organized33.59 18.918 .658 .885
TAN4-Free Wifi 33.60 19.298 .503 .896
TAN5-Free Parking 33.57 18.754 .716 .882
TAN6-Barista counter is
always clean and well-
organized
33.50 18.819 .637 .887
TAN7-Air-Conditioners make
customers feel comfortable33.57 19.269 .541 .893
TAN8-Modern machines are
equipped33.58 18.425 .659 .885
TAN9-Employees can speak
both Vietnamese and English
to communicate with
customers
33.61 19.055 .593 .890
TAN10-People can easyrecognize the logo and
signboard of Porevol coffee
33.70 18.510 .602 .890
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It can be seen from the table IV-8 above that the Tangibles dimension gets an
Cronbachs Alpha is 0.897 which is higher than 0.8. Thus, we can conclude th
all of ten items are well designed and related to the research. Furthermore, the
Cronbachs alpha if items deleted in table IV-9 could tell us that deleting any itemin tangibles dimension could decrease the reliability because those items are well-
related.
2. Reliability
Table IV- 10 Cronbachs Alpha of Reliability
Reliability Statistics
Cronbach's Alpha N of Items
.889 6
The Cronbachs Alpha of reliability dimension is 0.889 which is higher than 0could be seen as an good number. It tells us that the data collected is reliable.
Table IV-11 Item-Total Statistics of Reliability
Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Cronbach's Alpha
if Item Deleted
REL1- The employees are
being friendly, polite and
truthful
18.41 10.503 .654 .878
REL2-Perform services right in
a standard of time 18.31 10.348 .702 .870
REL3-Different payment
options are stated clearly18.44 10.422 .806 .856
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REL4-Maintaining efficiently
product and service quality of
all time
18.34 10.325 .678 .874
REL5-Website is always
available18.42 10.258 .769 .859
REL6-Employees have
professional knowledge to
respond to the customers when
they need help
18.34 10.327 .646 .880
As the same as Tangible dimension, the Cronbachs Alpha if items deleted frothe table IV-11 could be declined if any item of reliability dimension is deleted.
So we keep all items of this dimension.
3. Responsiveness
Table IV- 12 Cronbachs Alpha of Responsiveness
Reliability Statistics
Cronbach's Alpha N of Items
.844 7
Table IV-13 Item-Total Statistics of Responsiveness
Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Cronbach's Alpha
if Item Deleted
RES1-Home delivery products
are timely respond23.29 10.261 .500 .837
RES2-Offer a convinient place
for the customers if asked23.03 9.661 .639 .818
RES3-Quickly help customers
to solve problems23.20 9.603 .633 .818
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RES4-Timely delivering
products directly to customers23.12 9.183 .620 .820
RES5-Friendly asking detail of
order and happy to receive
feedback from the customers
23.40 9.465 .592 .824
RES6-Guiding the customers
in a enthusiasm way23.17 9.821 .605 .823
RES7-Assist the customers in
taking order if they need help23.03 9.019 .625 .820
The Cronbachs Alpha of Responsiveness is equal0.844 which is higher than 0.8.Because of an decrease of initial Cronbachs Alpha if any item belong tresponsiveness dimension is deleted, thus seven items would be kept.
4. Assurance
Table IV- 14 Cronbachs Alpha of Assurance
Reliability Statistics
Cronbach's Alpha N of Items
.347 6
Table IV-15 Item-Total Statistic of Assurance
Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Cronbach's Alpha
if Item DeletedASS1-Ensure the products are
within expiry period18.25 5.126 .406 .260
ASS2-The security policy is
accessible18.31 4.991 .478 .235
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ASS3-Good Reputation 18.51 4.813 .377 .229
ASS4-Personal information of
customers are secured18.46 5.005 .385 .248
ASS5-A customer platform is
provided for exchange ideas19.68 2.626 -.022 .871
ASS6-Employees always show
friendly attitude and
professional serving
18.40 5.130 .363 .266
It can be seen from the table above that assurance dimension has an unacceptable
cronbachs alphawhich is lower than 0.6. But if the item ASS5 is deleted, it could
make a huge increase in cronbachs alpha up to 0.871. So the ASS5 would bdeleted. And here is the new Cronbachs Alpha for Assurance dimension.
Table IV- 16 New Cronbachs Alpha of Assurance
Reliability Statistics
Cronbach's Alpha N of Items
.871 5
Now the Cronbachs Alpha is higher than 0.8.
5. Empathy
Table IV- 17 Cronbachs Alpha of Empathy
Reliability Statistics
Cronbach's Alpha N of Items.768 5
Table IV-18 Item-Total Statistics of Empathy
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Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Cronbach's Alpha
if Item Deleted
EMP1-Sincerity and patience
in resolving customer's
complains or problems
15.76 2.618 .509 .745
EMP2-Understand the
customer's need15.59 2.945 .689 .691
EMP3-Employees show no
discriminaiton among
customers
15.67 2.670 .460 .767
EMP4-Caring the customers in
special day.( Birthday,
women's day, lunar new year,
etc.)
15.53 2.845 .601 .707
EMP5-Giving promotion and
grateful to customers especially
customers who have member
or V.I.P card
15.75 3.156 .563 .728
Based on number from those table above, we can see that the CronbachAlpha of Empathy dimension is acceptable (higher than 0.6). And a decrease
in cronbachs alpha could occur if any items is deleted. 6. Satisfaction
Table IV- 19 Cronbachs Alpha of Satisfaction
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Reliability Statistics
Cronbach's Alpha N of Items
.640 4
Table IV-20 Item-Total Statistic of Satisfaction
Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Cronbach's Alpha
if Item Deleted
SATIS1-In general, I feel
satisfy with product quality ofPorevol cofee
11.98 2.314 .411 .577
SATIS2-I feel satisfy with the
attitude of the staffs of Porevol
coffee
11.93 2.283 .458 .545
SATIS3-I feel satisfy with the
service quality of Porevol
coffee
11.95 2.208 .465 .539
SATIS4-I fell satisfy with the
equippments of Porevol coffee12.15 2.440 .348 .621
The satisfaction dimension has Cronbachs Alpha is 0.640 which is higher 0.6 thcould give an acceptable reliability according to Rules of thumb. Deleting any
item of satisfaction could make a decrease in number so all of four item will be
kept.
7. Loyalty
Table IV- 21 Cronbachs Alpha of Loyalty
Reliability Statistics
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Cronbach's Alpha N of Items
.644 3
Talble IV-22 Item-Total Statistics of Loyalty
Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Cronbach's Alpha
if Item Deleted
LOY1-I will continue going to
this coffee shop in near future8.09 .728 .504 .479
LOY2-I will introduce thiscoffee shop to my family and
friends
8.09 .878 .440 .580
LOY3-I consider Porevol
coffee is my first choice when I
want to go to coffee shop
8.24 .596 .452 .579
As the same as satisfaction dimension, the cronbachs alpha of loyalty dimension justop in acceptable interval which is equal 0.644 in number, higher than 0.6. all of
three items will be kept for not creating decline in cronbachs alpha index.
4.4 FACTOR ANALYSIS:
As we mentioned in literature review, Exploratory Factor Analysis (EFA) is a factor
analysis technique that is used to test the validity of the data.
1. Exploratory Factor Analysis (EFA):
They Exploratory Factor Analysis (EFA) will be used in this part to test the modelwith Kaiser-Meyer- Olkin (KMO) and Bartletts test of Sphericity combined withvarimax rotation. The KMO index will measure the adequacy of the sample with the
r esult must be from 0.6 to 1 and the Bartletts test of Sphericity must give a
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significant is lower than 0.05. In addition, the Eigen-value of each factor mush be
greater than 1 and total variance explained need to be over 50%. Item that less than
0.5 and distributes in two or more components with the difference less than 0.3 would
be eliminated according to Kaiser in 1970.
In this test, item ASS5 was deleted in order to keep reliability of assurance
dimension. After running the test, the result give an KMO is 0.913 and Bartlett
number has a significant is 0. Thus, the EFA technique is suitable for data collected
from the survey.
Table IV- 23 KMO and Bartletts test for Independent Variables
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .913
Bartlett's Test of Sphericity
Approx. Chi-Square 5948.793
df 528
Sig. .000
Table IV-24 Rotated Component Matrix of Independent variables (1 st test)
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Component
1 2 3 4 5 6
TAN1-Good Location .830TAN2-The Productasted is
good.812
TAN5-Free Parking .743
TAN8-Modern machines are
equipped.723
TAN3-The menu is diversity
and well- organized.716
TAN6-Barista counter is
always clean and well-
organized
.673
TAN9-Employees can speak
both Vietnamese and English
to communicate with
customers
.636
TAN10-People can easy
recognize the logo and
signboard of Porevol coffee
.635
TAN7-Air-Conditioners make
customers feel comfortable.604
TAN4-Free Wifi .501
REL3-Different payment
options are stated clearly.825
REL2-Perform services right in
a standard of time.767
REL1- The employees are
being friendly, polite and
truthful
.753
REL5-Website is always
available.745
REL4-Maintaining efficiently
product and service quality of
all time
.672
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REL6-Employees have
professional knowledge to
respond to the customers when
they need help
.595
RES5-Friendly asking detail of
order and happy to receive
feedback from the customers
.743
RES2-Offer a convinient place
for the customers if asked.697
RES6-Guiding the customers
in a enthusiasm way.655
RES3-Quickly help customers
to solve problems.628
RES1-Home delivery products
are timely respond.614
RES4-Timely delivering
products directly to customers.556
RES7-Assist the customers in
taking order if they need help.534
EMP2-Understand the
customer's need.730
EMP1-Sincerity and patience
in resolving customer'scomplains or problems
.726
EMP5-Giving promotion and
grateful to customers especially
customers who have member
or V.I.P card
.652
EMP4-Caring the customers in
special day.( Birthday,
women's day, lunar new year,
etc.)
.613
ASS2-The security policy isaccessible
.868
ASS1-Ensure the products are
within expiry period.790
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ASS4-Personal information of
customers are secured.683
ASS6-Employees always show
friendly attitude and
professional serving
.634
ASS3-Good Reputation .595
EMP3-Employees show no
discriminaiton among
customers
.513 .575
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 6 iterations.
As you can see from the table IV-24 above, the item EMP3 distributes in two difference
components and has the difference is 0.062 which is lower than 0.3. So the item EMP3
will be eliminated.
Table IV-25 Rotated Component Matrix of Independent Variables (2 nd test)
Rotated Component Matrix a
Component
1 2 3 4 5
TAN1-Good Location .831
TAN2-The Productasted is
good.813
TAN5-Free Parking .739
TAN8-Modern machines are
equipped.723
TAN3-The menu is diversity
and well- organized
.717
TAN6-Barista counter is
always clean and well-
organized
.663
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TAN9-Employees can speak
both Vietnamese and English
to communicate with
customers
.645
TAN10-People can easy
recognize the logo and
signboard of Porevol coffee
.644
TAN7-Air-Conditioners make
customers feel comfortable.600
TAN4-Free Wifi .495
REL3-Different payment
options are stated clearly.822
REL5-Website is always
available.753
REL2-Perform services right in
a standard of time.752
REL1- The employees are
being friendly, polite and
truthful
.736
REL4-Maintaining efficiently
product and service quality of
all time
.687
REL6-Employees have professional knowledge to
respond to the customers when
they need help
.605
RES2-Offer a convinient place
for the customers if asked.744
RES5-Friendly asking detail of
order and happy to receive
feedback from the customers
.702
RES3-Quickly help customers
to solve problems.632
RES6-Guiding the customers
in a enthusiasm way.606
RES1-Home delivery products
are timely respond.606
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RES4-Timely delivering
products directly to customers.591
RES7-Assist the customers in
taking order if they need help .552
ASS2-The security policy is
accessible.866
ASS1-Ensure the products are
within expiry period.794
ASS4-Personal information of
customers are secured.685
ASS6-Employees always show
friendly attitude and
professional serving
.636
ASS3-Good Reputation .593
EMP1-Sincerity and patience
in resolving customer's
complains or problems
.763
EMP2-Understand the
customer's need.717
EMP5-Giving promotion and
grateful to customers especially
customers who have member
or V.I.P card
.622
EMP4-Caring the customers in
special day.( Birthday,
women's day, lunar new year,
etc.)
.620
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 6 iterations.
After progress EFA test, 5 new components are created. The first component contents
10 elements of tangible dimension and it still call Tangible. The second component
includes all six item of Reliability dimension and it still call Reliability. The third
component consist of all 7 items of Responsiveness dimension and it still got the
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name Responsiveness. The fourth component has only 5 items belongs to Assurance
dimension after item ASS5 was eliminated to raise the cronbachs alpha. And the la
component has only 4 remaining items belongs to Empathy dimension after item
EMP3 is deleted because of cross loading data in rotated component matrix test.
In addition, KMO and Bartletts test also used to test the Customer Satisfaction anCustomer Loyalty dimension.
Table IV- 26 KMO and Bartletts test for Customer Satisfaction
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .714
Bartlett's Test of Sphericity
Approx. Chi-Square 140.200
df 6
Sig. .000
Table IV-27 Component Matrix for Customer Satisfaction dimension
Component Matrix a
Component
1
SATIS3-I feel satisfy with the
service quality of Porevol
coffee
.740
SATIS2-I feel satisfy with the
attitude of the staffs of Porevol
coffee
.734
SATIS1-In general, I feel
satisfy with product quality of
Porevol cofee
.686
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LOY2-I will introduce this
coffee shop to my family and
friends
.752
Extraction Method: Principal Component
Analysis.
a. 1 components extracted.
Table IV-28 and IV-29 show us that Customer loyalty dimension has acceptable
KMO which is 0.651 > 0.6 and Bartletts significantis 0 < 0.05. So EFA test could beused for loyalty dimension. The result give 1 components extracted for this
dimension. It shows us that there are interrelationships between those items.
2. Cronbachs alpha after EFA test:
All of Cronbachs alphas of Tangible, Reliability, Responsiveness, Assurance areunchanged because there was no removed or added items after EFA test. Only one
dimension has the new Cronbachs Alpha is Empathy dimension after item EMP3eliminated.
Table IV- 30 New Cronbachs Alpha for E mpathy dimension after EFA test
Reliability Statistics
Cronbach's Alpha N of Items
.767 4
Table IV-31 New Item-Total Statistics of Empathy after EFA test
Item-Total Statistics
Scale Mean if
Item Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Cronbach's Alpha
if Item Deleted
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EMP1-Sincerity and patience
in resolving customer's
complains or problems
11.85 1.310 .574 .734
EMP2-Understand the
customer's need11.68 1.695 .664 .674
EMP4-Caring the customers in
special day.( Birthday,
women's day, lunar new year,
etc.)
11.63 1.579 .605 .692
EMP5-Giving promotion and
grateful to customers especially
customers who have member
or V.I.P card
11.85 1.889 .501 .748
After EFA test, the Cronbach alpha of Empathy reduce from 0.768 to 0.767 and still
acceptable for reliability test. All of four remaining items of empathy dimension are
well- related, so deleting any item could make a decrease in Cronbachs alpha numbe
4.5 CORRELATION TESTING:
In this part we will use Pearson Correlation testing which was developed by Karl
Pearson to evaluate the linear relationship between two variable. The purpose of this
test is to check the correlation between 5 elements belongs to Servqual model
(Tangible, Reliability, Responsiveness, Assurance, Empathy) and Satisfaction
dimension. Moreover, we also conduct a similar test for Customer Satisfaction and
Customer Loyalty to know whether they have correlation or not.
The result of this test show the relationship between each factors, the r value number
could show us that there is an correlation between those factors or not and it strong or
weak. The larger the r value is, the stronger of the correlation.
In this test, 2-tailed test is chosen to determine whether those variables are negative or
positive related.
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Hypothesis for this part:
H0: r=0 There is no correlation between two variables.
Hi: r# 0 There is correlation between two variables
The symbol ** show us that we can reject the null hypothesis(Ho) with significaat 0.01 level using two-tailed test.
Table V-1 Correlation between 5 factors and Customer Satisfaction
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Correlations
REGR factor
score 1 for
analysis
TANGIBLE
REGR
factor score
1 for
analysis
RELIABIL
TY
REGR factor
score 1 for
analysis
RESPONSIV
ENESS
REGR factor score
1 for analysis
ASSURANCE
REGR factor
score 1 for
analysis
EMPATHY
REG
scor
an
SATI
I
REGR factor score 1 for analysis
TANGIBLE
Pearson
Correlation1 .531 ** .462 ** .333 ** .364 **
Sig. (2-tailed)
.000 .000 .000 .000
N 300 300 300 300 300
REGR factor score 1 for analysis
RELIABILTY
Pearson
Correlation.531 ** 1 .519 ** .483 ** .456 **
Sig. (2-
tailed).000 .000 .000 .000
N 300 300 300 300 300
REGR factor score 1 for analysisRESPONSIVENESS
Pearson
Correlation.462 ** .519 ** 1 .453 ** .601 **
Sig. (2-
tailed).000 .000 .000 .000
N 300 300 300 300 300
REGR factor score 1 for analysis
ASSURANCE
Pearson
Correlation.333 ** .483 ** .453 ** 1 .430 **
Sig. (2-
tailed).000 .000 .000 .000
N 300 300 300 300 300
REGR factor score 1 for analysisEMPATHY
Pearson
Correlation.364 ** .456 ** .601 ** .430 ** 1
Sig. (2-
tailed).000 .000 .000 .000
N 300 300 300 300 300
REGR factor score 1 for analysis
SATISFACTION
Pearson
Correlation.335 ** .399 ** .603 ** .433 ** .587 **
Sig. (2-
tailed).000 .000 .000 .000 .000
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1. Multicollinearity tesing:
Collinearity or mulicollinearity is an undesirable situation occurred when the
correlation between independent variables are strong. This situation could reduce the
reliability and validity of the research. Hence, before we analyze the regression, we
have to test the collinearity first.
Table VI-1 Collinearity between 5 factors
Coefficients a
Model Collinearity Statistics
Tolerance VIF
1
REGR factor score 1 for
analysis TANGIBLE.668 1.496
REGR factor score 1 for
analysis RELIABILTY.561 1.784
REGR factor score 1 for
analysis RESPONSIVENESS.526 1.903
REGR factor score 1 for
analysis ASSURANCE
.691 1.447
REGR factor score 1 for
analysis EMPATHY.593 1.687
a. Dependent Variable: REGR factor score 1 for analysis
SATISFACTION
The Variance Inflation Factor (VIF) could show us that we have a multicollinear
problem or not. If the VIF index is from 3 to 5, you are probability get collinearity
problem. If your VIF number is greater than 5, you are likely face that problem. And if
your VIF is greater than 10, you are definitely have collinearity problem. The table VI-1
shows us that the VIF of our 5 independent factors (Tangibles, Reliability,
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Responsiveness, Assurance and Empathy) have weak relationship with each other. In
other words, there is no collinearity threat in this situation.
2. Regression Analysis:
Multiple linear regression method is used in this part. The purposes of this test are to test
the relationship between 5 independent factors of Servqual model as we mentioned with
dependent variable is Customer Satisfaction dimension and relationship between
independent variable is Customer Satisfaction with dependent variable is Customer
Loyalty. We will do two times test in this part.
a) Regression analysis between 5 factors and customer satisfaction:
Table VI-2 Regression Result- Model Summary (5 factors)
Model Summary
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
1 .676 a .457 .448 .74292996
a. Predictors: (Constant), REGR factor score 1 for analysis EMPATHY,
REGR factor score 1 for analysis TANGIBLE, REGR factor score 1 for
analysis ASSURANCE, REGR factor score 1 for analysis RELIABILTY,
REGR factor score 1 for analysis RESPONSIVENESS
From table VI-2, we can see that the R square number is equal 0.457. It is not a good new
for the company because it explains only 45.7% of changes in dependent variable can be
explained by the variables in the regression equation (independent variables). And the
remaining percentage of changes (the larger) in dependent variable is explained by other
factors not in the regression.
In addition, we can use ANOVA (analysis of variance) table to check the statistical
meaning of the data.
Table VI-3 ANOVA result for 5 factors
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ANOVA a
Model Sum of Squares df Mean Square F Sig.
1
Regression 136.728 5 27.346 49.544 .000
Residual 162.272 294 .552
Total 299.000 299
a. Dependent Variable: REGR factor score 1 for analysis SATISFACTION
b. Predictors: (Constant), REGR factor score 1 for analysis EMPATHY, REGR factor score 1 for
analysis TANGIBLE, REGR factor score 1 for analysis ASSURANCE, REGR factor score 1 for analysis
RELIABILTY, REGR factor score 1 for analysis RESPONSIVENESS
Look at the table VI-3 above, we can realize that the significant of the F statistic is very
small (lower than 0.05). It means that 5 independent variables (Tangibles, reliability,
responsiveness, assurance, empathy) could be acceptable in explaining the variation in
the dependent variable (Customer Satisfaction).
Now we are going to do T test to check the reliability of each independent variable could
be used to predict the dependent variable not only in the sample size but also for the
whole population.
Table VI-4 Coefficient of 5 factors
Coefficients a
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) 2.743E-016 .043 .000 1.000
REGR factor score 1 for
analysis TANGIBLE
.014 .053 .014 .267 .790
REGR factor score 1 for
analysis RELIABILTY.004 .057 .004 .069 .945
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REGR factor score 1 for
analysis RESPONSIVENESS.343 .059 .343 5.787 .000
REGR factor score 1 foranalysis ASSURANCE
.136 .052 .136 2.622 .009
REGR factor score 1 for
analysis EMPATHY.316 .056 .316 5.663 .000
a. Dependent Variable: REGR factor score 1 for analysis SATISFACTION
Look at the T test result from table VI-4, we can see that the p-value of tangibles,
reliability are greater than 0.05. It means that the relationship between customer
satisfaction and tangibles, reliability are not reliable and it could be used only in this
sample size, not for the whole population. In contrast, the three remaining variables
(Responsiveness, Assurance and Empathy) have statistical significance because the p-
value is lower than 0.05. In other words, Responsiveness, Assurance and Empathy could
be the predictors for Customer Satisfaction factor in the whole population. In this case,
we reject the null hypothesis of those three variables on Customer Satisfaction and accept
null hypothesis for tangibles and reliability dimensions.
Now we continue and focus on three acceptable dimension with the Standardize
coefficients beta. You can see that Responsiveness dimension got the largest betanumber. It means that responsiveness have most impact on customer satisfaction. And
after that are Empathy and Assurance respectively with beta equal 0.316 and 0.136. Now
the regression linear could be showed by the following:
SF1= 0.14TAN+ 0.04 REL+ 0.343 RES+ 0.316 EMP+ 0.136ASS + (2.743E-016)
b) Regression analysis between customer satisfaction and customer loyalty:
Now we want to do the similar thing as part 2a for customer satisfaction and customer
loyalty.
Table VI-5 Regression Result- Model Summary (satisfaction and loyalty)
Model Summary
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Model R R Square Adjusted R
Square
Std. Error of the
Estimate
1 .641a
.411 .409 .76859440a. Predictors: (Constant), REGR factor score 1 for analysis SATISFACTION
The table VI-5 above gives the result that 41.1% of changes in dependent variable
(customer loyalty) can be explained by the variables in the regression equation (customer
satisfaction). And the remaining percentage of changes can be explained by other factors
that is not included in this research.
Now we want to check how this work on the whole population by using F test.
Table VI-6 ANOVA result for Satisfaction and Loyalty
ANOVA a
Model Sum of Squares df Mean Square F Sig.
1
Regression 122.960 1 122.960 208.147 .000
Residual 176.040 298 .591
Total 299.000 299
a. Dependent Variable: REGR factor score 1 for analysis LOYALTY
b. Predictors: (Constant), REGR factor score 1 for analysis SATISFACTION
After doing F test, the result gives the significant is lower than 0.05. Thus, customer
satisfaction doing a good job in explaining the variation of customer loyalty.
Table VI-7 Coefficient (customer satisfaction and customer loyalty)
Coefficients a
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1 (Constant) 1.550E-015 .044 .000 1.000
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REGR factor score 1 for
analysis SATISFACTION.641 .044 .641 14.427 .000
a. Dependent Variable: REGR factor score 1 for analysis LOYALTY
Table VI-7 give the p-value of customer satisfaction is 0, lower than 0.05, so this result
could be applied not only on this sample size but the whole population. In other words,
we would like to reject null hypothesis of customer satisfaction on customer loyalty
because it actually has an impact. The regression linear is showed by the following:
SF2= 0.641 SATIS + (1.550E-015)
c) Hypothesis testing result:
Hypothesis Discription Result
H1 There is a possible impact of
Tangibles on customer satisfaction.
Do not support
H2 There is a possible impact of
Reliability on customer satisfaction.
Do not support
H3 There is a possible impact of
Responsiveness on customersatisfaction.
Support
H4 There is a possible impact of
Assurance on customer satisfaction.
Support
H5 There is a possible impact of
Empathy on customer satisfaction.
Support
H6 There is a possible impact of
Customer Satisfaction on customer
loyalty.
Support
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Chapter V
CONCLUSION AND RECOMMENDATION
The last chapter will emphasize the final result, implication of the thesis and suggestion
for Porevol coffee shop.
5.1 CONCLUSION
This research is conducted to measure factors that affect customer satisfaction of Porevol
coffee shop in Ho Chi Minh City in field of service quality. It is important significance
for the Porevol coffee shop to deeply understand the customer insights and achievecustomer loyalty.
In order to measure the research better, Ive chosen the Servqual model as a theoretiguide for setting the scale and designing the questionnaire. The questionnaire is designed
base on 5 dimensions of SERVQUAl model named Tangibles, Reliability,
Responsiveness, Assurance and Empathy then distributed to the customer. This research
was conducted from January 2013 to May 2013.
In this research, the survey is done by collecting the responses from the customers who
tasted the Porevol coffee shop products with the sample size is 300 persons. The
Software named SPSS version 20 is applied to progress the data the collected from the
survey. There are 4 main steps were done in data analysis procedure to find out the final
result of this research, the first step is discuss about descriptive statistic. The second step
related testing the reliability of the data, the next step is Exploratory Factor Analysis
(EFA) test to check the validity of the data. And the last one is Regression analysis.
After processed the data, all of five factors belongs to Servqual model have positive
impact on the customer satisfaction especially Responsiveness dimension has thestrongest relationship. However, after running T test, there were three of them
(responsiveness, assurance and empathy) could be the predictors for the customer
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satisfaction. Two remaining factors ( Tangibles and Reliability) could not be because the
relationship between them and customer satisfaction is not reliable.
Table V-1 Review the coefficient of 5 FactorsCoefficients a
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) 2.743E-016 .043 .000 1.000
REGR factor score 1 for
analysis TANGIBLE.014 .053 .014 .267 .790
REGR factor score 1 for
analysis RELIABILTY.004 .057 .004 .069 .945
REGR factor score 1 for
analysis RESPONSIVENESS.343 .059 .343 5.787 .000
REGR factor score 1 for
analysis ASSURANCE.136 .052 .136 2.622 .009
REGR factor score 1 for
analysis EMPATHY.316 .056 .316 5.663 .000
a. Dependent Variable: REGR factor score 1 for analysis SATISFACTION
The result give the average means of the customer satisfaction and customer loyalty are 4
and 4.01 respectively compared to 5. It could tell us that the customers who come to
porevol are satisfy with the service and willing to continue to go to Porevol coffee shop.
But the number also tell us that not all of them agreed with that. So the Porevol should
improve somethings more to attract more customers because during the selling-
purchasing process, some of intended mistake could occur and reduce the customer
satisfaction and customer loyalty as well.
In addition, based on table V-1 about the correlation between 5 factors and customer
satisfaction and table V-2 about the correlation between customer satisfaction and
customer loyalty, we found out that there was correlationship between 5 factors of
Servqual model with customer satisfaction and correlationship between customer
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communicate with customers.
Nhn vin c th giao ti p bng song ng c Ting Anh
ln Ting Vi t v i khch hng.TAN10 People can easy recognize the logo and signboard of
Porevol coffee.
Khch c th d dng nh n ra l g v b ng hiu ca
Porevol coffee.
Reliability
tin cy
REL1 The employees are being friendly, polite and truthful.
Nhn vin lun ha nh, l ch s v ng tin cy.REL2 Perform services right in a standard of time.
Thi gian lm 1 ly n c ung hon t t trong 1khong th i gian cho php.
REL3 Different payment options are stated clearly.
Phng thc thanh ton khc c s dng.REL4 Website is always available.
Trang web lun truy c p c/REL5 Maintaining efficiently product and service quality of
all time.
Duy tr hi u qu cht l ng sn phm v dich v milc.
REL6 Employees have professional knowledge to respond to
the customers when they need help.
Nhn vin c ki n thc chuyn mn gi p khchhng khi h c th c mc.
Responsiveness RES1 Home delivery products are timely respond.
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p ng
Giao hng t n ni ng gi .RES2 Offer a convenient place for the customers if asked.
H tr ch dn cho khch hng ch ngi tt nu cyu cu.
RES3 Quickly help customers to solve problems.
Nhanh chng gip khch hng gi i quyt kh khan.RES4 Timely delivering products directly to customers.
Khng b t khch hng i lu khi yu c u dng.RES5 Friendly asking detail of order and happy to receive
feedback from the customers.Hi mt cch than thi n khi khch hng ch n mn v
vui v nhn phn hi t khch hng.
RES6 Guiding the customers in a enthusiasm way.
Ch dn khch hng m t cch nhi t tnh.
RES7 Assist the customers in taking order if they need help.
H tr khch hng g i mn khi c n thit.
Assurance
m bo
ASS1 Ensure the products are within expiry period.
Bo m cht l ng sn phm khng qu h