NATIONAL ECONOMICS UNIVERSITY BUSINESS SCHOOL ~~~~~~*~~~~~~ NGUYEN THI VAN ANH IMPROVING THE SERVICE QUALITY OF CGV CINEMA IN VIETNAM MASTER BUSINESS ADMINISTRATION THESIS Hà Nội - 2015 NATIONAL ECONOMICS UNIVERSITY ~~~~~~*~~~~~~ NGUYEN THI VAN ANH IMPROVING THE SERVICE QUALITY OF CGV CINEMA IN VIETNAM MASTER BUSINESS ADMINISTRATION THESIS ` Supervisor: DR. NGUYEN THANH HIEU Hà Nội - 2015 ACKNOWLEDGEMENT Moving each step forward, I achieved the understanding as to the sweetness of endeavor to gain knowledge. Research is one of difficult process but the research results based on our effort is very great. First of all, I would like to express my thanks and appreciation to my supervisor in National Economics University Doctor Nguyen Thanh Hieu, who instructed me to be more feedback to complete my thesis.
I would also like to thank to all the lecture and professors of EMBA 12 program of Business school at National Economic University with their experience and background knowledge who gave me foundation of research achievement. Also I would like to thank Managers of Departments of CGV cinema for their continued supports and encourage me in conducting the survey to collect data. Then I would like to give my deepest thank to colleagues in EMBA12B and friends who provide me guidance with their ideas and thoughts. Last but not least, I would like to express my highly appreciation and deep gratitude to my loving family for their kind support.
Hanoi, August 2015 Nguyen Thi Van Anh TABLE OF CONTENT ACKNOWLEDGEMENT ABBREVIATION LIST OF TABLES LIST OF FIGURES EXECUTIVE SUMMARY. Secondary Data collection. Primary Data collection. Methods of analysis.
Scope of research:.3 CHAPTER 2: THEORICAL BACKGROUND ON SERVICE QUALITY. Theory of service quality. Definition of service. Customer expectations of service.
Customer Perceptions of Service. Service Quality Measurement. Service quality in cinema industry. Service quality measurement in the cinema industry.3 CHAPTER 3: DIMENTION TO MESURE SERVICE QUALITY OF CGV.
Overview of CJ CGV. Foundation, Development history and Achivements of Cj CGV:. CGV’ services and its characteristic. Added value service.
Dimension to measure quality of cinema service of CGV.3 CHAPTER 4: CGV ‘S SERVICE QUALITY ANALYSIS. 3 CHAPTER 5 – SOLUTION FOR CGV CINEMA. Oriented development on quality of CGV cinema:. Solutions to imrove quality of CGV cinema in Vietnam.
Solutions for tangible dimension:. Solutions for reliability dimension:. Solutions for responsiveness dimension:. Solutions for assurance dimention:.
Solutions for empathy dimention:. Solutions for Network aspect dimension:.Error! Bookmark not defined. Solutions for convinence dimension:.3 ABBREVIATION SPSS Statistical Package for Social Sciences 2D Two dimensions 3D Three dimensional LIST OF TABLES Table Annual earnings of Vietnamese sites (Wbn).3 Measurement tool at interview in the first time:.4: Measurement tool of study (questionanaire body).5 Comparisons between Parasuraman Model and Thesis Model.6: Section 1 of measurement tool (customer’s specifications).7: Section 2 of measurement tool for research (questionnaire body).3 Respondets’s number of times of service usage.6 Gap between customer’s expectation and CGV’s performance in tangible dimension.7 Gap between customer’s expectation and CGV’s performance in Reliability dimension.8 Gap between customer’s expectation and CGV’s performance in Responsiveness dimension.9 Gap between customer’s expectation and CGV’s performance in assurance dimension.10 Gap between customer’s expectation and CGV’s performance in Empathy dimension.11 Gap between customer’s expectation and CGV’s performance in Network aspect dimension.11 Gap between customer’s expectation and CGV’s performance in Convenience dimension.13 Gap between customer’s expectation and CGV’s performance at all service quality dimension at CGV.3 LIST OF FIGURES Fig 1.2: Parasuraman ‘s model 5 gaps.2 Respondents’numbers of times usage. 3 EXECUTIVE SUMMARY Service quality is one of important things for enterprises to survive and develop in competitive environment.
CGV is a leading cinema sector, established in 1990 so quality is very important for its existence and development perspective to meet: “3 targets – Cultural, Great and Vital”. Thus, it is necessary to determine the current status of quality of cinema service at 1980 since then propose solution to improve service quality here. Moreover, there are not results of research on service quality of cinema at CGV. Therefore, this study would like “Improving service quality in CGV in Vietnam” for finding quality service dimensions ands solutions for improving quality of CGV cinema service at the leading cinema company.
Aims of this study are to (1) discover the factors affecting service quality of CGV cinema. Clarify dimensions to measure quality of cinema service at CGV; (2) determine the current status of quality services of CGV and analyze the causes of the current status; (3) Offer solutions to improve service quality of CGV. There are 36 questions developed in the questionnaires. All of questionnaires were sent directly and random to 300 CGV ’s customers (when they visited to CGV cinema in big cities in Vietnam or they visited to CGV ‘s website, social network) in different number of year usage, genders, salary and occupation.
259 (86,3%) questionnaires were collected. After that, SPSS 11.5 is used to analyze data for findings. With data collected analyzing, in this research, there are some results: For quality of cinema service assessing, most of dimensions and items have mean higher than 4/6 (means gaps between customers expectation and CGV’s performance are from 2 to 1) so quality of cinema at CGV is evaluated quite high and at the positive sides. However, if CGV has quality oriented, it has to do many things to improve quality to satisfy customers.
In recommendations and conclusions, service quality dimensions at CGV are identified, including 7 dimensions: Tangible, Reliability, Responsiveness, Assurance, Empathy, and Network aspect, Convenience. Although, each dimension has mean and median higher than 4/6, implies positive results, CGV should have clear strategy and detail plans to improve all of service quality dimensions for keeping quality oriented. The most important thing is that there should be singleness of mind about service quality at CGV. Based on this awareness, there should be each staff or each manager who in charge of quality assurance at each board and department to ensure service quality internally.
Moreover, there should be comprehensive measures to solve quality problems at CGV. CGV is achieved many success so that managers and staffs could have be psychological to sleep still on win. Thus, CGV have change to understand cinema and improve service quality. And if CGV keeps quality oriented well, it will be successful in cinema market.
Rationale Everybody knows which type of intense feeling you can get from an evening out. As costumer you can get totally relaxed and you only do the things you want to do. There is even a whole industry build on this type of entertainment feeling. In the entertainment industry different types of amusement are offered, every moment of the day a person can do what he wants to, to enjoy this passionate feeling.
So, it does not matter if the feeling is caused by a romantic dinner, an evening in the theatre or watching a movie it is about feeling the emotions: fun, fear or excitement. The purpose of the entertainment industry is to let the consumer experience an intense feeling. In total there are twelve different types of entertainment companies that try to fulfill this need of entertainment (Vogel, 2004). In the academic literature this type of feeling is called experiential view (Holbrook and Hirschman 1982) and is associated with the characteristics: feelings, fun and fantasy.
In this paper the focus will be on the topic of need for entertainment combined together with the cinema market. The cinema market is one the biggest markets in the entertainment industry and went through a change in consumer decision-making process. The last few decades many things changed in the home cinema technology, almost every person in Vietnam has a television in their living room with the possibilities to watch movies on a high quality level. So the possibility exists that consumers do not go to the cinema any longer, to see the newest movie, in the best possible way.
One of the main topics of this paper will be the question, what the reasons for a consumer nowadays are to go to the cinema. The part need for entertainment will play an important role in this paper. By adding the existing academic literature to this phenomenon a model will be made that predicates the consumer decision making process inside the cinema market. Compared with countries with strong cinema as United States, South Korea, China the ratio of viewers on a population of 4, it means that a person can watch the movie 4 times per year.
While that figure is about 0.2 in Vietnam, Vietnam should be evaluated in the industry is very potential market. This study focuses on customer perceptions toward service quality in the CGV cinema in Vietnam. Founded in 2005 by the investors Vietnam and overseas, Megastar has launched the first Megastar Cineplex in Hanoi in 2006 and then in the city in 2007. The company has been rapidly gaining on 50% of the market and currently is the system where the number of theaters and theater in Vietnam in 7 provinces with 13 Cineplex.
CJ CGV Group took over Megastar Group in 2011 and is currently implementing a comprehensive reform plan and elevates your home entertainment system. The objective of CGV in Vietnam is maintaining the current market leader and become combinatorial movies, entertainment No. To accomplish this goal, the company said it will expand its network in Vietnam reached 20 cinemas this year and will increase to 30 cinemas in 2017. CGV has opened a unique concept about cinema with the idea of culture where the audience not only watch movies at international standards cinemas, but also can enjoy culinary diversity, buy products related to entertainment & culture, experience the CGV “Beyond Movies” concept.
CGV has plans to be a long-term contributor to the development of Vietnam’s cinema industry not only through the daily activities at the cinema, but also through CGV community-outreach programs: Movies for Everyone, Toto’s Filmmaking Class, Vietnam Film Festival in Korea, and YXineff. Besides, the trend that people go to the luxury cinema increases these years. CGV, the brand quite well known in the market, now has to face with the high competition because of launching of series luxury cinema. There have already been many researches interest in perceived service quality of customers the field of cinema or entertainment industry.
However, there were not any attempts have been made to measure service quality of cinema in Vietnam before. So this limitation will become problems for CGV cinema in the way of developing and improve its competitiveness to adapt customers ‘s need. Because of above reasons, I decide to choose the topic: “IMPROVING SERVICE QUALITY OF CGV CINEMA IN VIETNAM” with the hope of finding solutions to help CGV cinema in particular and other cinema in general become more attractive in Vietnam service industry environment. Research objectives This research focuses on: To review service quality of CGV cinema To investigate the service quality of CGV cinema.
To suggest results of research to enhance service quality of CGV cinema. Research question CJ CGV Group Megastar Group took over in 2011 and is currently implementing a comprehensive reform plan and elevates your home entertainment system. The objective of CGV in Vietnam is maintaining the current market leader and become combinatorial movies, entertainment No. However, based on the results of customers’ survey, there are some problems in implementation and quality management.
Thus there is a gap between customer expectations and perceptions of cinema service. Therefore, this study focuses to solve these problems to improve the quality of service of CGV. These questions should be answered: How is the service quality of CGV cinema? How well does the service quality meet the customer’s satisfaction? How to enhance service quality of CGV cinema? 1. Research process Literature Review Choose the appropriate model Innovative SERVQUAL Model Customer Survey Secondary data (company’s Primary data Collecting data reports, internet, newspaper…) Data analysis Recommendation & Solution (Source: The author, 2015) Fig 1.