VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY NGUYEN THANH TUNG RELATIONSHIP BETWEEN SERVICE RECOVERY AND SERVICE RECOVERY SATISFACTION IN COURIER LOGISTICS SERVICE: AN EMPIRICAL EVIDENCE FROM VIETNAM MASTER’S THESIS VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY NGUYEN THANH TUNG RELATIONSHIP BETWEEN SERVICE RECOVERY AND SERVICE RECOVERY SATISFACTION IN COURIER LOGISTICS SERVICE: AN EMPIRICAL EVIDENCE FROM VIETNAM MAJOR: BUSINESS ADMINISTRATION CODE: 8430101.01 RESEARCH SUPERVISORS: Prof. TOHRU INOUE Associate Prof. PHAN CHI ANH Hanoi, 2022 COMMITMENT I have read the plagiarism infractions and understand them. I certify on my own honor that this research result is original to me and does not breach the VNU Vietnam Japan University's policy prohibiting plagiarism in academic and scientific research activities (issued in conjunction with Decision No.
700/QD-DHVN dated September 30, 2021). Hanoi, 28 May 2022 Master student Nguyen Thanh Tung RESPONSIBILITY DECLARATION I would like to declare that my Master’s thesis of “RELATIONSHIP BETWEEN SERVICE RECOVERY AND SERVICE RECOVERY SATISFACTION IN COURIER LOGISTICS SERVICE: AN EMPIRICAL EVIDENCE FROM VIETNAM” is the product of my research and has never been published in any other work. Throughout the execution of this project, I have taken research ethics very seriously; all findings are the product of my study and surveys, and all sources are properly referenced according to rules. I am solely responsible for the accuracy of my graduation project’s numbers, statistics as analysis, and other materials to be used in this research.
Hanoi, 28 May 2022 Master student Nguyen Thanh Tung ACKNOWLEDGEMENT First and foremost, it can be claimed that the master's thesis gives me a great chance to assess how I can use the knowledge and skills I acquired over my two years at Vietnam Japan University (VJU). My sincere gratitude goes out to everyone who assisted me in finishing this job. First of all, despite the fact that they are both quite busy with their jobs and businesses, I would like to express my sincere gratitude to Prof. Tohru Inoue and Ass Prof.
Phan Chi Anh for taking the time to mentor me during this time. The fact that they consistently urge me to do independent research and attempt to relate the theoretical subject with the actual problems in my real company in the logistics industry makes them both appropriate supervisors for me. There are no suitable words to express how grateful I am for their endurance, kindness, inspiration, excellent training, and ideas that have improved this research. Second, I want to express my gratitude to Yokohama National University (YNU) and VJU of Vietnam National University (VNU) in Hanoi for giving me the opportunity to expand my research knowledge and skills.
Thirdly, I want to thank Mrs. Nguyen Thi Huong, the program assistant for the MBA program, for her help with administrative concerns. In addition, Ass Prof. Yoshifumi Hino received much gratitude and respect for being our primary JICA specialist and instructor in a number of fascinating courses.
He provided us with a wealth of invaluable information and pointers for our research path. Fourthly, I would like to thank my family and friends for always encouraging me and giving me the crucial support that I need to get through the challenging time it takes to finish the paper. However, there are a number of areas in this report that might be improved owing to a lack of knowledge and skills as well as time restrictions. I thus appreciate your helpful suggestions on how to make it better very much.
Sincerely, TABLE OF CONTENTS LIST OF TABLES. i LIST OF FIGURES. ii LIST OF ABBREVIATIONS. iv CHAPTER 1: INTRODUCTION.
Study motivation and Research gap. Study Objective, Questions. Structure and Scopes of Study .5 CHAPTER 2: LITERATURE REVIEW. The Service recovery (SR).
The Service recovery satisfaction (SRS). The Service recovery (SR) and the Service recovery satisfaction (SRS). The attribution theory on the role of service failure’s cause determination. “Perceived control” and “Stability attribution” interacting with the relationship between the Service recovery and Service recovery satisfaction.
Sample and data collection. Data analysis methodology. Demographic Statistic and Descriptive analysis. Reliability test and Factor analysis to measure Model.
Summary measurement statistics of construct variables. Pearson’s correlation analysis. Hypothesis testing - Regression. Analyses of moderating interactions .31 CHAPTER 4: DISCUSSION AND IMPLICATION .39 CHAPTER 5: LIMITATION AND FUTURE RESEARCH .45 APPENDIX A: LITERATURE SUMMARY .51 APPENDIX B: ANALYSIS RESULT .67 APPENDIX C: THE QUESTIONAIRE OF SURVEY .69 LIST OF TABLES Page Table 3.1 The 07 – Linkert scale 17 Table 3.2 The Variables and scales of measurement 18 Table 3.3 The summary of Cronbach’s Alpha result test after the filter 24 Table 3.4 The Measurement statistics of construct scales 27 Table 3.5 The result of Pearson’s correlation analysis 28 The influence result of SR to SRS when applying Justice Table 3.7 The regression result of the moderation effect test 32 The regression result of the moderation effect test after Table 3.8 35 removing not supported variables Table 3.9 The summarized table of hypothesis’s result 36 i LIST OF FIGURES Page Figure 2.1 The service recovery paradox diagram 7 Figure 2.2 The Perceived control, and Stability Attribution correlating 13 with the Customer satisfaction Figure 3.1 Proposed analytical framework 19 Figure 3.3 The concluded framework 38 ii LIST OF ABBREVIATIONS IJ Interactive Justice OJ Outcome Justice PC Perceived control PJ Procedural Justice SA Stability attribution SF Service failure SR Service recovery SRS Service recovery satisfaction iii ABSTRACT Finding the relationship between Service Recovery (SR) and Service Recovery Satisfaction is the main objective of this research (SRS).
When testing the moderating effects of various factors, the moderator factor analysis was employed to evaluate the data from 300 samples of customers of courier logistics who were surveyed in three areas of Vietnam. The study supports the justice theory by showing that the three aspects of interactive justice (IJ), procedural justice (PJ), and outcome justice (OJ) have a substantial influence on service recovery satisfaction (SRS). It also assesses which element should be emphasized while doing the SR. This finding also focuses on researching the moderator impact of Perceived Control (PC) and Stability Attribution while employing the Attribution theory in the cause attribution of service failures (SA).
The conclusion, in particular, demonstrates that the Courier Logistics company should notify the customer about the failure cause explanation if the failures are unavoidable or if force majeure strikes. Consumer opinions of the company's capacity to regulate service quality have a bearing on how well service recovery initiatives are received by customers. Additionally, the stability of the failure cause affects how the recovery process affects customer satisfaction with the service recovery process, therefore the company should work to take their service seriously to prevent the recurrence of the failure cause for the service. Keywords: Service failure, service recovery, service recovery satisfaction, stability attribution, perceived control, loyalty.
iv CHAPTER 1: INTRODUCTION 1. Study background The supply chain is coming with the logistics operation, the Council of Supply Chain Management Professionals provided the following definition of logistics (CSCMP): To satisfy customer expectations, logistics plans execute and regulate forward and reverse flows, storage of products, and associated information between the place of origin and consumption (Schroeder & Goldstein, n. Logistics significance cannot be overstated. Logistics management is concerned with the efficiency and effectiveness of the day-to- day activities that go into producing a company’s completed products and services.
To enable contemporary production and distribution, logistics facilitates the movement of commodities within nations. Without logistics, global commerce between nations would be impossible (Schroeder and Goldstein n. From 2020 to 2027, the worldwide logistics industry is predicted to grow at a CAGR of 6.5 percent, from USD 7,641.20 billion in 2017 to USD 12,975.64 billion in 2027 (Mayank Halmare, n. Logistics is a rapid growth business field in Vietnam, with an annual growth rate of over 10% and a 7.02 percent contribution to the national GDP (Crif D&B Vietnam LLC, 2021).
This is undeniably a sector with enormous development potential. The coronavirus disease 2019, also known as COVID-19, is a very contagious respiratory virus that was first identified in the Chinese province of Hubei in December 2019. Because of the virus's high rates of transmission and danger to the general populace, several governments have implemented strict measures to restrict its spread. There has been an uncommon event as a result of the public and corporate responses to the crisis, which some analysts feel might have significant ramifications for the world economy (Bloomberg, 2020).
Because of its extensive consequences, the World Health Organization classified the coronavirus infection as a pandemic in early March 2020. Guiyang Zhu and Mabel C. Chou contend in a study released in 2020 that COVID-19 has disrupted enterprises and placed enormous strain on the global supply chain, 1 highlighting how fragile and susceptible the modern supply chain is to disruption. Consequently, businesses are under more and more pressure to create "resilient" supply networks.
Adopting the "Plus One" Diversification Approach is one of the proposals that comes with a warning since it "signals to adjacent nations that there is a possible economic opportunity available that was previously fully dominated by large production-heavy nations like China" (Zhu et al. As a consequence, there may be a cost reduction, providing governments and companies with cheaper manufacturing costs without the disadvantage of restricted flexibility. (2020, Zhu, Chou, and Tsai) The logistics operation is the most significant component of the supply chain according to the definition given above. The logistics service operation quality should be controlled and handled more seriously in Vietnam or other nations that are predicted to be the destination of supply chain movement, according to the trend of supply chain movement.
Due to the growing complexity of supply chain management and related external (and uncontrolled) issues, the logistics business is especially vulnerable to service failures (Andrew, ISCIT 2007). Prior research focused on the last stage of the supply chain or predominantly from a business-to-consumer (B2C) perspective. These studies were evaluated and followed up on failed recovery studies (Primo, 2003). Most people conceive of courier service as "fast, door-to-door, local or international pickup and delivery service for high-value merchandise or urgently essential files" (Business Dictionary, 2017).
The characteristics that distinguish courier services from standard postal or logistic services are speed, security, tracking, specialization and individualization of services, the job of the courier, and claimed short arrival times. Courier services are highly varied in terms of their scope, delivery time, customer type, range of operator activities, and geographic location (Rutkowski et. According to Marijan Cingula's 2017 research, courier services may be classified as B2B (Business sends to Business), B2C (Business sends to Consumer), and C2X (Business sends to Consumer) depending on the connection between the shipper and the consignee (Consumer sends to anywhere). The delivery of non-standard goods, return services, high volatility in demand for goods and shipment volume, dynamic management of delivery location and time (referred to as the last mile), and other issues specific to e-commerce present themselves to operators 2 providing courier services, particularly those in the B2C and C2X segments (Kawa, 2014).
Due to the high required performance standards that must be met while controlling these operations, service failure might happen in high percentages if it is not managed properly. An empirical study service type that may be used to examine service failures that result in service recovery and customer satisfaction is courier logistics. Even the best service providers sometimes make delivery errors (Berry, 1980), which leaves customers dissatisfied. In Vietnam, where there are still many exaggerated and unfounded impressions, the issue of service failure and the subsequent need to discover methods to restore it in order to sustain customers, increase consumer happiness while using the service, and maintain customer loyalty.
Study motivation and Research gap 1. Theoretical necessity Various studies researched previously the relationship between the Service recovery and the Service recovery satisfaction. Almost research concluded that Service recovery has a significant impact the Service recovery satisfaction.