UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ HUA VU THANH THAO TOURIST SATISFACTION TOWARDS FOOD AND RESTAURANT SERVICE IN MUI NE MASTER OF BUSINESS (Honours) Ho Chi Minh City – Year 2014 TIEU LUAN MOI download : skknchat@gmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ HUA VU THANH THAO TOURIST SATISFACTION TOWARDS FOOD AND RESTAURANT SERVICE IN MUI NE ID: 22110055 MASTER OF BUSINESS (Honours) SUPERVISOR: Prof. Le Nguyen Hau Ho Chi Minh City – Year 2014 TIEU LUAN MOI download : skknchat@gmail.com ABSTRACT Customer satisfaction is popular topic of many research. However, the demand of customers changes very quickly. The necessary of understanding current customers need are always the concern of business especially restaurants service.
This study examines the relationship among restaurant attribute to customer satisfaction who have experiences of restaurant service in Mui Ne. It also investigates the impact of customer satisfaction to word of mouth after their perception of service. Using data set form a sample of 180 customers, the study found that prices has the most influence to customer satisfaction compared to service quality, food quality and atmosphere. Then customer satisfaction has positive impact on word of mouth.
These findings suggest that in order to increase customer satisfaction, restaurant should take consideration of price strategy. On the other hand, quality of food, service and atmosphere also need to increase to attract more customers. TIEU LUAN MOI download : skknchat@gmail.com CONTENTS CHAPTER1: INTRODUCTION .Objective of the study .Significant of the study. Scope of the study.
4 CHAPTER 2: LITERATURE REVIEW. Customer satisfaction in restaurant industry. Stimuli in restaurant. Word of mouth.
Research instrument and measurement scales. Data collection and procedure. Exploratory Factor Analysis (EFA). 37 TIEU LUAN MOI download : skknchat@gmail.
Multiple regression analysis. Simple regression analysis. Discussion of the findings. 48 CHAPTER 5: IMPLICATION, LIMITATIONS AND CONCLUSION .1: Source of measurement scales .1: KMO and Bartlett's Test 1A .2: Total Variance Explained 1A .3: Rotated Component Matrix 1A .4: KMO and Bartlett's Test 1B .5: Total Variance Explained 1B .6: Rotated Component Matrix 1B .7: KMO and Bartlett's Test 2A .8: Rotated Component Matrix 2A .9: KMO and Bartlett's Test 2B .10: Total Variance Explained 2A .11: Rotated Component Matrix 2B .12: KMO and Bartlett's Test 2C .13: Total Variance Explained 2C .14: Rotated Component Matrix 2C .15: Reliability analysis result .17: Multiple Regression result.18: Anova of Multiple Regression .19: Coefficients of Multiple Regression.
44 TIEU LUAN MOI download : skknchat@gmail.20: Simple Regression Result .21: Anova of Simple Regression .22: Coeficients of Simple Regression .1: Regression Standardized Residual (MRL) .2: Regression Standardized Residual (MRL2) .1: Proposed research model. 22 TIEU LUAN MOI download : skknchat@gmail.com CHAPTER 1: INTRODUCTION 1. Research background All of the service businesses today are improving their service quality to increase customers’ satisfaction. In order to achieve customer satisfaction (CS), recognizing customers' needs and being able to satisfy them is very important.
Great profits will come to enterprises which understand and apply effective policies of customers’ satisfaction rapidly, especially restaurant industry. As Reisig and Chandek (2001) discussed the fact that customer’s expectation are different depend on their knowledge of products or service. This means that if the service performance is good as they expected, customers will be satisfied. Gilbert, Veloutsou, Goode & Moutinho (2004) stated that the success of a company is not how much services and goods they can provide, it is how well the company satisfies customers.
Along with that, satisfied customers are the long term success of business. As mentioned, great satisfied customers will bring more profit and success to the business. In addition, a research has shown that customers who are not satisfied will inform to eight to ten people about their experiences (Leboeuf, 1987) so that customer satisfaction has a strong linkage with their behavior. Specifically, in restaurant industry, to increase sales, the priority for restaurant owners is to understand guest satisfaction.
Moreover, restaurant industry has many segments and different types of service encounter so it is very important to restaurant in determine factors make customers feel satisfaction about their service. Restaurants which can deliver quality service effectively and consistently will reach the level of customer satisfaction. Kotler, (2011) mentioned customers look for “a set of benefit” which can satisfy their needs. In addition, customers suppose restaurant services to a package, so that they will consider several of criteria for selecting dining places (Sloan, 2004).
Page | 1 TIEU LUAN MOI download : skknchat@gmail.com In this paper, customer satisfaction of food service and restaurant in Mui Ne is mainly investigated. Mui Ne stays on the Southeastern Vietnam belongs to Binh Thuan province which is a coastal resort town. The town is favorite destination of Russian because of the beautiful beach and inexpensive cost of tourisms service here. Mui Ne beach is tropical beach which suitable for kite surfing and windsurfing to attract more tourists come to.
At present, according to the report of Binh Thuan department of Culture, Sports and Tourism, in 2012, Binh Thuan tourism sector has achieved revenue of VND 4,358 billion.141 million turns of visitors including 341,160 turns of foreigners, a year-on-year increase of 13.5% came to Binh Thuan. Mui Ne- Phan Thiet is becoming “a paradise of resorts” of international tourists and a “Russian village” in Viet Nam because of more than 30% Russian tourists of the total international visitors comes to Vietnam annually. Contributing to the growth of Mui Ne tourism, food service and restaurant are also a key factor to encourage customers stay in Mui Ne longer. In addition, Binh Thuan tourism has the strategy to attract visitors come to Binh Thuan more often and stay longer.
The authorities of province try to give preferential conditions to investors to improve the quality of Mui Ne area tourism and hotels service. Besides, providing quality food services has become one of the critical issues in the tourism industry. The demand of restaurant and food service quality is higher when the numbers of tourist come to Mui Ne increase. For these reasons, understanding customer satisfaction is more important for Mui Ne food service and restaurant in order to keep current customers and attract more visitors in the future.
However, there seems to be paucity of data on service quality in Mui Ne's food service and restaurant. According to a number of tourists, Mui Ne food service is not as good as other coastline area. It seems food service here doesn’t have investment properly. Additionally, it is mentioned on Talkvietnam, there is Vietnamese restaurant discriminates Page | 2 TIEU LUAN MOI download : skknchat@gmail.com against Vietnamese in Mui Ne.
Therefore, the study of customer satisfaction about food service and restaurant is necessary to apply an appropriate management intervention. Base on the result of this study, Binh Thuan province or Mui Ne food service and restaurant can figure out reflective upgrading method for their best service. Objective of the study The main purpose of this study is to explore the perception of customers towards food and restaurant services in Mui Ne and how factors related to these service effects their overall satisfaction ultimately leading to Word of mouth. • Identify factors that determine the satisfaction of customers towards food and restaurant service in Mui Ne.
• Identify the influences of customer satisfaction to their behavior intention to word of mouth. Significant of the study Although many studies had done research about customer satisfaction, but there was few of research focus on food service in Mui Ne. In the study of Nguyen (2012), customer satisfaction of restaurant service was measure by seven factors: price, quality of food, service value for peaceful life, service value to social recognition, service value to social integration which only focus on service value. Other research of Chau (2007), a Parasuraman model was adapted to measure customer satisfaction about restaurant service in Can Tho.
So, there seem to be few of study adapted Namkung (2009) model together with (Ramapuram & Batra, 2005) measuring factor influence customer satisfaction in restaurant industry. Base on two original models, this study will build the appropriate model for Mui Ne restaurant and food service in order to measure service quality here. The Page | 3 TIEU LUAN MOI download : skknchat@gmail.com result of this research will be the reference for restaurant owner in order to improve their business to attract more customers.Research methodology This study will exam the proposed conceptual model adapt from Namkung (2009). Questionnaire will be used to collect data and SPSS software is the main tool to analyze data.
The realiability and validity of measurement scales will be tested by Cronbach’s Alpha and Exploratory Factor Analysis (EFA). Regression analysis will perform to determine the relationship and impacts between factors in the model.Scope of the study The survey will be conducted in Ho Chi Minh city which is the most crowded city in Vietnam. The reason is Mui Ne locates on the area not too far from Ho Chi Minh city about 200 kilometers. A lot of tours travel from Ho Chi Minh to Mui Ne.
In addition, easy to take bus lines from Ho Chi Minh city go to Mui Ne is one of other reason. Finally, Mui Ne becomes popular choice for people living in Ho Chi Minh who want to enjoy their vacation at weekend because it doesn’t take much time to travel there.Research structure This study is formed into five chapters. First chapter is introduction which presents the overview of the research includes research background, overall methodology, objective of the study, significant of the study and scope will be examined by the author. Chapter two reviews the definition of six main concept in the research: perceive service quality, customer satisfaction in restaurant industry, restaurant attributes includes food quality, atmosphere, service quality and price.
The theory of customer satisfaction and word of mouth will be described, too. Besides, this part brings out some other authors point of view Page | 4 TIEU LUAN MOI download : skknchat@gmail.com about research concepts which is stated on their previous study. Also, the argument of author to come up with hypotheses will be presented in second chapter. Next chapter is methodology which describes specifically research procedure and how to collect data.
Chapter four presents and explains research result after analyzing by SPSS software. Final chapter is the discussion of the findings, implication, and conclusion. Limitation and recommendation are also stated in this chapter. Page | 5 TIEU LUAN MOI download : skknchat@gmail.com CHAPTER 2: LITERATURE REVIEW As stated above, second chapter concentrates in literature review which presents some definition of factors in research model.
Some of customer satisfaction definitions will be mentioned in the first part in order to give out the overview for readers. Second part will describes restaurant attribute which includes restaurant factors affects customer perception. The next part will define six factors in the model and followed by some other authors point of view about research concept. Then the argument of author to come up with research hypotheses and build research model will be discussed in last part.Customer satisfaction in restaurant industry Customer satisfaction was identified as an assessment of firm’s performance.
On the view of Cronin & Taylar (1992), customer satisfaction was how pleasing customers feel after experiencing products or service at certain time. Other aspect explained customer satisfaction was evaluation of total consumption process which influenced post purchase intention (Johnson & Fornell, 1991). A theory of Lewin(1938) discussed customer satisfaction was the gap between their expectation and perception. Specifically, if perceived performance was over expectation, customers would be satisfied.
Kotler (1998) explained 3 distinct benefit level of service: core benefit, tangible benefit and intangible benefit. Constitutive benefit which customers receive is core benefit. The benefit of consuming and producing during the service delivery process is tangible benefit. And intangible benefit relates to human element of service delivery.