DISSERTATION: CUSTOMER LOYALTY RATING: A CASE OF KIM THANH PHAT Student’s name: HO LUONG HAI YEN Class: BAM6001 Program: Dissertation Student ID: 2124789 Supervisor: Ron Smith Words: 11.503 Ho Chi Minh City, May 2023 DECLARATION I thus declare that the thesis that I am now working on with the topic "Customer loyalty rating: a case of Kim Thanh Phat" is an independent piece of research work that I have accomplished with the assistance of my advisor - Mr. Ron Smith and Ms. Pham Thi Tuyet Trinh. The report contains accurate and trustworthy figures along with all supporting documentation.
Academic integrity violations have been explained to me, and I comprehend them. Therefore, I attest that the work contained in this report is my own, and I assume full responsibility for any issues that may arise. Author (Signature, print name) ABSTRACT Customer loyalty is the primary objective of marketing, but fostering it and realizing its benefits remain ongoing challenges. According to the theory, loyalty encompasses purchasing attitudes and behaviors that benefit a merchant over rivals.
The purpose of this thesis is to examine the factors that influence customer loyalty. Assess the extent of consumer loyalty at Kim Thanh Phat in the Vietnam market based on this information. Methods: Since the purpose of the thesis is to collect data, analyze, and evaluate variables, a quantitative method including EFA and regression analysis is employed in the thesis. In addition, the thesis will be founded on the data collection survey.
Examine and evaluate which factors affect loyalty as a result. Determine which factors have the greatest impact on consumer loyalty. Finally, provide suggestions and ideas for expanding and maintaining Kim Thanh Phat's customer loyalty. ACKNOWLEDGEMENT First, I would like to thank the management of Kim Thanh Phat Limited Liability Company for giving me the opportunity to gain real-world experience here.
As a result, I was able to receive training and gain valuable experience, thereby expanding my knowledge base at the company. In addition, the company assisted me in sending 240 surveys to Kim Thanh Phat customers. I would like to thank everyone in customer service and consulting who assisted me during my investigation. Everyone in the organization took time out of their busy schedules to assist, guide, and support my research on customer loyalty at the company.
Ron Smith and Ms. Pham Thi Tuyet Trinh, as well as Mr. David Ratcliffe, the campus manager, deserve my sincere appreciation. Because they took the time to guide and assist me greatly during the research paper analysis process.
Finally, I am grateful to the University of Bolton for the chance to study, work, and research at the enterprise. This thesis research paper helped me learn and recognize my flaws. My report could contain errors or omissions due to time and knowledge constraints. I anticipate obtaining the instruction and input of the instructors so that I can continue to develop.
Author (Signature, print name) Contents Chapter 1/ INTRODUCTION. Background of the Study. Objectives of the Study. 4 Chapter 2/ LITERATURE REVIEW.
Definition of customer loyalty. Research of study. Determinants of customer loyalty. 11 Chapter 3/ RESEARCH METHOD.
Data collection technique. 22 Chapter 4/ FINDING ANALYSIS. Limitation of the Study. Exploratory Factor Analysis (EFA).
Analysis of the Most Significant Findings. The overall results and their implications. Implications for the direction of future research. 44 Appendix List of Table Table 1/ Check the reliability of the scale.
22 Table 2/Customer's Gender. 23 Table 3/Customer’s Age. 25 Table 4/How many times have you used our products ?. 25 Table 5/Table of KMO and Bartlett's Test.
27 Table 7/Total Variance Explained. 28 Table 8/Rotated Component Matrix. 29 Table 9/Table of KMO and Bartlett's Test. 30 Table 10/Communalities of dependent variable.
30 Table 11/Total Variance Explained. 34 Table 15/Mean analysis of loyalty. 38 List of Figures Figure 1/Conceptual Model and Hypotheses. 7 Figure 2/Four factors affect of customer loyalty.
9 Figure 3/ The Research Onion Framework. 12 Figure 5/ Image of histogram graph. 35 Figure 6/Normal P-P Plot of Regression Standardized Residual. Background of the Study The globalization of competition, the saturation of markets, and improvements in information technology have all led to an increase in consumer awareness and heightened the degree of competitiveness that exists among enterprises that engage in worldwide commercial marketplaces.
This has resulted in an increase in the number of firms competing with one another. The level of demand now is far more than it was in the past. An organization's profitability, market position, growth, and long-term survival depend on its ability to attract and retain consumers. Without clients, an organization cannot be productive (Borishade, Ogunnaike, Kehinde, and Aka 2022).
In order for organizations to have more competitive advantages in the market, their marketing strategy has to move from the conventional way such old method to a more current method of relationship marketing, as stated by Guillén (2019). One of these approaches is one that places an emphasis on maintaining loyal customers. In the current global corporate world, many organizations recognize the importance of client loyalty as a component of their marketing strategies (Duffy, 1998). As can be observed, the majority of firms in the modern world are either investigating, assessing, or putting into action various loyalty programs and initiatives in order to cultivate robust ties with their clientele.
In the current climate of the market, maintaining a loyal customer base is of utmost importance for businesses. Customers are an organization's most valuable resource, and businesses can only generate further value from those consumers if they show genuine concern for those customers (Hughes, 2008). According to Roberts-Lombard and Tait research from (2018), one of the advantages of knowing customer loyalty is that it results in a connection that is both more robust and established between the firm and the consumer. Creating deep relationships with one's clientele is one of the most financially advantageous things a business can do since it enables the organization to get access to resources that cannot be bought or sold.
Second, it makes it possible for businesses to collect more relevant information about their consumers. These include things like marketing and operational expenses, amongst others. Second, consumers have the ability to function as part-time workers by providing 1 information to their own circle of friends and family members. With that vantage point, organizations have the ability to grow into more client groups and classes.
Overview This research focuses either on the theoretical development of tools or approaches to measure customer loyalty or on ways to experimentally establish the link between customer loyalty and key drivers or related factors. Earlier customer loyalty researchers had a tendency to concentrate on various sorts of definitions and in the context of customer attitudes and behaviors or their phases within a continuum or follow-up. level or extent, albeit not in the particular context of life cycle stages or continuums (Dierks and Christoph Burmann, 2017). In addition to describing the strategic benefits of a transforming organization, some researchers suggest that customer loyalty possesses customer lifetime-type characteristics such as lifetime value (Lee, 2018).
This is in addition to the fact that customer loyalty can bring customer loyalty to the optimal level and the method of returning to a more favorable equilibrium (Oly Ndubisi, 2006). According to the findings of earlier studies, the idea of customer loyalty seems to have a number of parallels with the various phases of the product life cycle. Irma's book from 2015 provides a definition of the word as a strategy in which the management of interactions, connections, and networks is an essential component. In a similar vein, Butscher (2016) proposes that the objective of the corporation is to cultivate and sustain a mutually beneficial, long-term connection with its clientele in order to maximize profits for the business as a whole.
To put it another way, the primary objective is to increase the level of client loyalty. According to the description presented above, client loyalty may be broken down into two categories: attitudes and behaviors. These two facets are intertwined in a very tight way. Attitudinal loyalty is often described as both a positive influence on relationship continuity as well as a desire to maintain the connection, while behavioral loyalty is characterized by repeated transactions.
Behavioral loyalty may be shown via repeat business. In addition to this, consumer loyalty may be broken down into two distinct categories: passive loyalty and active loyalty (Ball, et al. When a consumer is actively devoted to your business, they are willing to try out new things, even paying more for your offerings. They tell their friends and family about your product and promote it to others.
They have a positive perception of themselves and their 2 reputation as a result of identifying themselves with your business. They have faith in your honesty and in the work you are doing. In contrast, the concept of passive loyalty refers to clients who remain faithful to their favored brands and services regardless of whether or not the market circumstances have improved (Maria Pilar Martinez-Ruiz, et al, 2021). According to a different viewpoint presented by Leverin and Liljander (2006), in some circumstances, a person's loyal mentality may not necessarily be reflected in their loyal actions.
Research Questions In this thesis, the subject matter will be investigated further using the three questions that are provided below. H1: What elements contribute to the level of satisfaction that customers have with Kim Thanh Phat Enterprise's level of service? H2: Which elements have the most impact, and which have the least influence, on the level of customer satisfaction with Kim Thanh Phat Enterprises's service quality? H3: How does the level of service quality and customer loyalty vary amongst the various client groups that are defined by demographic criteria? H4: Which strategies need to be put into action so that the efficiency of the process of creating loyal customers may be improved? 1. Objectives of the Study Kim Thanh Phat Business has to determine the loyalty of its customers. Do research to determine the extent to which various types of customers are loyal to a brand based on demographic factors.
An examination of the elements that influence the loyalty of Kim Thanh Phat Enterprise's customers. Provide suggestions on how we might further increase the effectiveness of our efforts to foster client loyalty. 3 The information obtained from the customer loyalty survey and the interview with the customer care department at Kim Thanh Phat will be analyzed in this thesis using the quantitative approach including the EFA model and the regression model. Both of these models will be used in conjunction with one another.
The SPSS will then be used to aggregate the results of the survey from approximately two-hundred people. These findings will be compared with the theory in order to determine the level of customer loyalty and potential solutions to improve customer loyalty and efficiency in fostering brand loyalty in customers. The conclusion of the thesis will be presented as the last part of this essay. Research structure The paper contains five chapters, each of which serves a distinct purpose.
Chapter 1 functions as the report's introduction, outlining its primary purpose and objectives. This chapter also provides a summary of the research conducted and the methodology utilized. In Chapter 2, the literature review, the report describes the preceding research conducted to support the study's findings. In Chapter 3, the Research Method, the methodology used to conduct the study, including data acquisition and analysis, is described.
The findings of the research are presented in Chapter 4 along with a thorough analysis of the results. Chapter 5, the conclusion, provides a summary of the report's key findings and recommendations for future research. Collectively, these chapters provide a comprehensive comprehension of the conducted research and the resulting findings. Chapter 2/ LITERATURE REVIEW 2.