ĐẠI HỌC QUỐC GIA HÀ NỘI TRƯỜNG QUẢN TRỊ VÀ KINH DOANH --------------------- NGUYỄN THỊ PHÚC A STUDY ON FACTORS AFFECTING THE CUSTOMER LOYALTY IN PHU THANH INVESTMENT JOINT STOCK COMPANY NGHIÊN CỨU CÁC NHÂN TỐ ẢNH HƯỞNG ĐẾN LÒNG TRUNG THÀNH CỦA KHÁCH HÀNG TẠI CÔNG TY CỔ PHẦN ĐẦU TƯ PHÚ THÀNH LUẬN VĂN THẠC SĨ QUẢN QUẢN TRỊ KINH DOANH HÀ NỘI – 2023 ĐẠI HỌC QUỐC GIA HÀ NỘI TRƯỜNG QUẢN TRỊ VÀ KINH DOANH --------------------- --------------------- NGUYỄN THỊ PHÚC A STUDY ON FACTORS AFFECTING THE CUSTOMER LOYALTY IN PHU THANH INVESTMENT JOINT STOCK COMPANY NGHIÊN CỨU CÁC NHÂN TỐ ẢNH HƯỞNG ĐẾN LÒNG TRUNG THÀNH CỦA KHÁCH HÀNG TẠI CÔNG TY CỔ PHẦN ĐẦU TƯ PHÚ THÀNH Chuyên ngành: Quản trị kinh doanh Mã số: 8340101.01 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH Người hướng dẫn khoa học: PGS.TS Hoàng Đình Phi HÀ NỘI – 2023 DECLARATION The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article. The other’s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given. The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business, and the laws for above-mentioned declaration. ACKNOWLEDGEMENT To complete this research, I would like to express my endless gratitude to the scientists inside and outside the school and my family and friends.
First of all, I would like to sincerely thank Assoc. Dr Hoang Dinh Phi, enthusiastically advised me on the selection of topics, models, and other problems encountered by the author. I sincerely thank my family for helping me, facilitating me to go to school, and encouraging me in the process of writing my thesis. Thanks to my family’s support, I continued steadily in the process of studying, coming through pregnancy and going to this stage.
I sincerely thank the teachers at Hanoi School of Business & Management for allowing me to access new knowledge and learning methods by the school's requirements. Sincerely thank my colleagues for helping me in the process of both studying and working and solving related tasks together. TABLES OF CONTENTS LIST OF TABLES .i LIST OF FIGURE. The novel theory on customer’s loyalty.
Empirical studies on customer’s loyalty. Research subject and research scope. Theoretical research method. Data collection methods.
Data processing methods .13 CHAPTER 1: THEORETICAL FRAMEWORK OF CUSTOMER’S LOYATY. Overview of customer’s loyalty. The concept of customer’s loyalty. Benefits of customer’s loyalty.
Factors influencing customer’s loyalty. After-sales service (including handling complaints after purchase). Experience of some companies and implications for Phu Thanh Investment Joint Stock Company. Experience of some companies.
Implications for Phu Thanh Investment Joint Stock Company .25 CHAPTER 2: THE CONTEXT STATUS OF CUSTOMERS’ LOYALTY AT PHU THANH INVESTMENT JOINT STOCK COMPANY. Overview about Phu Thanh Investment Joint Stock Company. History and development of Phu Thanh Investment Joint Stock Company. The main performance of the company.
Customers loyalty at Phu Thanh Investment Joint Stock Company. Overview of the company's customer base. General evaluation of customer’s loyalty at Phu Thanh Investment Joint Stock Company. Factors affecting the custormerss loyalty In Phu Thanh Investment Joint Stock Company.
Analyze the reliability of the scale. Exploratory factor analysis and research model adjustment. Linear regression analysis and hypothesis testing. SOLUTIONS FOR DEVELOPING CUSTOMERS’ LOYALTY AT PHU THANH INVESTMENT JOINT STOCK COMPANY.
Development orientation and requirements for increasing customer’s loyalty at Phu Thanh Investment Joint Stock Company. Development orientation of Phu Thanh Investment Joint Stock Company. Requirements for increasing customer’s loyalty at Phu Thanh Investment Joint Stock Company. Solutions for developing customers’ loyalty at Phu Thanh Investment Joint Stock Company.
Appreciate after-sales support services. Diversify products to create more choices for customers. Change company and outlets image. Improve the image of outlet staff .61 CONCLUSION, LIMITATION, AND IMPLICATION .1 Appendix 1: In-depth interview guidelines.
Results of in-depth interview .19 Appendix 5: Cronbach’s Alpha .20 LIST OF TABLES Table 2.1: Asset structure of the Company .2: Capital structure of the Company .3: Annual report of the company. Total customers of the company .5: Average score of 4 aspects of analysis .6: Customers' expectations about products of the company .7: Customer’s loyalty to products .8: Customers' expectations about the company's staff .9: Customer’s loyalty in terms of the company's staff .10: Expectations about the company's image aspect .11 Customer’s loyalty in terms of company image. Customer expectations about after-sales support service .13 Customer’s loyalty about after-sales support service .14: Calculation results of correlation .15: KMO & Bartlett’s Test result (for independence variables) .16: Summary of regression results of Enter/Remove.47 i LIST OF FIGURE Figure 1. SERVQUAL model – proposed by Parasuraman et al.1: Structure of the Company.
Rationale Theoretically, customer’s loyalty results from an accumulation of positive experiences combined with the quality a business provides to their customers. In the context of deepening integration and strong development today, the race for market share, especially to attract loyal customers, is getting more and more exciting. Survey results of Ernst & Young (2021), with more than 32,000 retail customers in the Asia Pacific region, show that Vietnamese customers have the highest rate of changing service providers (re-cited by Tran, Nguyen, and Tran (2020)). However, the loyalty of Vietnamese people is at the lowest level - demonstrating the willingness to change suppliers of goods or services.
For example, in Australia or Japan, this rate is only 10-20%; in other countries in Southeast Asia, about 50%, 65%-77% of Vietnamese customers are willing to switch to other businesses that are providing similar products. “In the position of customers, they expect the company to provide more than the usual demand. As a result, many companies focus on acquiring new customers to increase their revenue, but the reality is that the most predictable source of revenue comes from existing customers. A study shows that 20% of a company's existing customers can generate 80% of the profits (Cuong, 2020).
Therefore, the key to any business growth is not on attracting new customers, but more importantly, building revenue with existing customers.” To achieve business performance as expected, the company must have customer’s loyalty resulting from a long-term relationship-building process. The cost of maintaining old customers is only 1/ 5 or 1/7 compared to finding new ones. With increasingly harsh business conditions, the cost of finding new customers becomes more expensive, so maintaining loyalty becomes one of the necessary conditions if the company wants to grow in the future. “Phu Thanh Investment Joint Stock Company was established in 2008 with the main field of activity being the distribution, purchase and sale of confectionery beverages of all kinds.
Starting from 2015, as Vietnam's economy warms up, the needs 1 of the company's customers also gradually changed: customers switched from traditional confectionery products to high-end confectionery products, also used goods related to foreign goods (such as foreign wine). The company has strongly developed the market in Hanoi and neighbouring provinces and expanded to the central and southern regions.” Although it has met the needs of customers for products and services; but, at present, competition in the field of supplying cake (or confectionery), beverages and luxury consumer goods (such as foreign alcohol) is increasing. This is reflected in the survey report of small and medium-sized enterprises of the General Statistics Office. Every year, enterprises in the same field as Phu Thanh Investment Joint Stock Company increase by 5% on average and try to attract new customers and meet the needs of existing customers.
Phu Thanh’s performance was also strongly affected by the Covid-19 epidemic: customers' incomes decreased, the cash flow of partners was delayed, unable to import goods from other countries. Therefore, ensuring customer’s loyalty plays an essential role in the operation strategy to ensure stable operation in times of crisis and to compete with other competitors in the market.” Therefore, the topic: "A study on factors affecting the customer’s loyalty In Phu Thanh Investment Joint Stock Company" was selected for research. The novel theory on customer’s loyalty The novel theory of customer’s loyalty is best known in the research of Parasuraman, Zeithaml, and Berry (1988). However, the issue of loyalty is divided into two distinct schools: the North American and the Scandinavian.
Each school has different ideas for assessing customer’s loyalty, specifically as follows: Firstly, the Scandinavian This school was developed by Grönroos (1984), this school was developed by (Chase, 2010; Glynn & Lehtinen, 1995; Gronroos, 1990; Grönroos, 2017). The Scandinavian school principle has always been that the customer is the focus, so it is necessary to study customer’s loyalty. Only when customers are satisfied will they be loyal, thereby saving businesses the cost of finding new customers. 2 The school's principal says it should focus on customers because providing goods and services without them is impossible.
Moreover, customers are satisfied, and they will be loyal, helping businesses save money on finding new ones. One of the significant contributions of this school is the definition of loyalty. Repeat purchases or referrals demonstrate loyalty and satisfaction about products and services (Glynn & Lehtinen, 1995). Satisfaction is determined by the gap between consumers' perceptions and their expectations.
This branch of research focuses on assessing the factors affecting customers' loyalty, including the external and the internal factors. For the external factors, such as the service environment, the influence of the surrounding people can affect consumers' wants (or needs), thereby affecting their satisfaction and loyalty. Therefore, this research branch is very suitable for the hopitality, because only this industry is interested in context issues. For the internal factors, this school focuses on relationship management issues with customers, in which price and image of the business are concentrated.
Gronroos (1990) argues that the price of a product or service has the greatest impact on customer’s loyalty and satisfaction. He found that, in the previous period (about 1985- 1989), the service that customers received was scarce, pushing up prices rapidly, so customers feel less satisfied and have more options (to choose another). In addition, service consumption also makes customers feel appreciated, so the organisation's image is more noticeable. Thus, this branch of research raises two issues: how the service delivery process is organized (provisioning before and after the service is performed), and the business employee's image positively impacts customer’s loyalty (Chase, 2010).
In other studies, Grönroos (2017) focuses especially on the image of the organization, because the effects (both positive and negative) of social networks can be an urgent problem to solve. Thus, this research branch's success has been defined as customer’s loyalty associated with customer satisfaction and influencing factors. The opposite side of this school is: price can affect customers, but with high-class services, customers do not 3 care about one (Zeithaml, Berry, & Parasuraman, 1996); or some fields (or industries) that do not use a lot of externalities (e., common consumer goods), the external factors have no impact (or insignificant) on customers as mentioned later by other researchers. However, the results of this branch of research cannot be denied, as they have indirectly contributed to the formation of modern marketing.
For example, some later authors such as Kotler (2003) or Keller and Brexendorf (2019) have developed an organization's brand image, pricing policy, and product policy to create a marketing mix in different fields. Secondary, the North American This is the most studied school, emerged by models such as the SERVQUAL model (Parasuraman et al., 1988), SERVPERF (Cronin Jr & Taylor, 1992) and a lot of other models developed later (Lewis & Mitchell, 1990; Zeithaml et al. The main content of these studies is that in addition to being customer-centric, measuring customer satisfaction and loyalty by the gap between expectations and the actual value perceived by consumers.