VNU- UNIVERSITY OF ECONOMICS AND BUSINESS FACULTY OF BUSINESS AND ADMINISTRATION IMPACT OF SERVICE QUALITY PERFORMANCE ON CUSTOMER SATISFACTION A CASE OF HANOI DAEWOO HOTEL Supervisor’s name: Dr. Tuan Nham Phong Student’s name: Linh Nguyen Thi Hai Student ID: 09050292 Intake: 2009 - 2013 Hanoi — May, 2013 ACKNOWLEDGEMENTS The research could not be completed without the guidance and support of some individuals who help me prepare the research. First and foremost, I would like to thank Dr. Nham Phong Tuan, who kindly guides me and shares his knowledge and experience to help me write this research.
My grateful thanks also go to Ms. Dang Bich Hanh, my instructor at Hanoi Daewoo hotel, who supported to me collecting data for the research from all departments in hotel. Great deals appreciated go to Faculty of Business Administration, especially Ms. Pham Thu Hien, Mr.
Nguyen Ngoc Phu and Ms. Nguyen Hue Minh, who provided helps sincerely when | have got troubles with some necessary procedures. Last but not least, 1 would like to thank all my family members and friends who always encourage me through my internship and writing the research time. Linh Nguyen Thi Hai TABLE OF CONTENTS CHAPTER 1 INTRODUCTION .- Ăn HH HH TH HH Hit | J.! HHEGKPTDOHTHDLxcseerrnierotirrinnsrsihAES52R0iSTEED0Đ12ES8G803uS78.sEkseleememeee=asrfie re 1 1, .0365ã/588 050488 2 uA SCOP COE SUC uunesxzsrryrrrstotebgrtror trtt00006 en eran com eee ee rere ree 3 1.
óc t2 vn nh HT HH Hàn Hy 3 1. - 5 TH TH TH go TH TH HH Tê 4 1. 4 CHAPTER 2 LITERATURE REVIEW AND THEORETICAL FRAMEWORK. 6 cai, (J CFVIG(UWNÌHĂfssressrenntroninttnttittittiBOEXSRNGERHDGHTDISVIENHS.TIENGHHTNRĐXDGGNE-ANSERISNEDNNGHUETERENEETEES0X51VHĐES ee6 2.1 Concept of service QuaÌÏlfy.- --- «kh HH HT ng HH ni, 6 "5=.1 Conceptual framework for service quality philosophy.2 Major aspects of service quality 0.3 The relationship between service quality and customer satisfaction.2 Models of service quality rneaSur€im€Tt.1 Model of service quality Gaps and SERVQUAL methodology.
12 Ded, SERVPERF TEIHO(OÌDEWSserensenrrrroRindtttEEOOSOEEEEOHHEHEEESRSE-EDEEDSHESOSHSSEERZEEEESMT 18 2.3 SERVPERF model in literature of service quaÌIÉY.1 Designing QU€SfIOnnIAIT€S. nh nh TH Hi nt 23 N9).23 (SAILS S18 srassmnrrintrrrindtatttitidtiGEETNGEEEREDHHURNEHSEĐSEPEHEOIĐBS4E002909809-19ess. S12 HH HH HH TH HH HT TH HH th tiệt 25 3.1 Descriptive Sfaf{IS{ICS. Ăn HH HH HH HH tr 27 3.
sóc cà 2s S212 62506 1c886E555188506158402/03291E01581605310EE1EE 28 3.4 R€prE5SSIiöñ anal ySis.cesssnsass sesnevsancansee 000101501330851850550508038105181500035089911045E6 29 CHAPTER 4 CURRENT SITUATION AND ANALYSIS RESULT OF SERVPERF MODEL IN DAEWOO HOTEL.overview about Daewoo hotel msseosarseenernossroigiristitgEESEHESSSG181608 601883355 0098.1 Daewoo hotel hisfOry. ng HH như 31 4.2 Organizational StTUC{UT€. Products and S€TVIC€S. Ăn HT nh HT nh HH Hit 34 4.2 Survey results and research analySiS.---- cà + sinh re.1 Survey results and data analysis.1 Descriptive data anaÌySIS.- ¿+ + + s HH Hy 11121112110 re.3 Exploring factor analyS1S.4 Repression ATiAÌWSÏS.5 Research model and tested reSuÏ(.-- --- -- +52 22 *+ 2x et 55 CHAPTER 5 FINDINGS AND SUGGESTIONS.1 Evaluating current situation of service quality in Daewoo hotel.2 Impact of service quality factors on customer satisfaction in Daewoo hotel.3 Suggestion to improve service quality in Daewoo hotel.1 Improving TANGIBLE component « ssscsscccsssssessonccstossesersensescrerasencencenveereess 59 iii 5.2 Improving RELIABILITY and ASSURANCE components.
Improving RESPONSIVENES - EMPATHY component.4 Suggestions for other components affecting on service quality.4 Limitations of the SfUdy. HH HH HH HH TH ng 01 tk, 62. s91 98s85u4Sh59828318338X18/3JES055gD0559DDISSSES13830/4G010180180i00310033388005 00408 L0 65 JÄPEBNDIEsiseseseorressrttngseitgoiottgrEiipskTEPMVES0408981gu 0060404090. 3 090512-010110181i2001E EĐện chinh gimrgee 70 iv LIST OF FIGURES Figure 2.1 Service quality model (Parasuraman et al.1 Hypothesis of research Model wicsssecmvcvssssansunsaenorunvenencememernnnsrnsnesrswases 26 Figure 4.1 Daewoo hotel’s image (Marketing department of Daewoo hotel, 2013) 33 Figure 4.2 Organizational Structure (Human resource department of Daewoo hotel, LIST OF TABLES Table 2.1 Pattern of service quality of S€rIV€ aSS€SST€TI,.2 Patterns of service quality measurement of SERVPERF model .1 Cronbach’s alpha and internal consistency (George & Mallery, 2003) .1 Bed room information (human resource department of Daewoo, 2013) .3 Desériptive Statisties ssesaosasosesnnasnietieoditiEtg0149104SL731430155889615445/71485758961888 39 Table 4.4 Reliability statistics of TANGIBLE scaÌe.4 Reliability statistics of TANGIBLE scale (cont.5 Reliability statistics of RELIABILITY seale.
5 -scs<cc+xsssss 42 Table 4.5 Reliability statistics of RELIABILITY scale (cont.6 Reliability statistics of RESPONSIVENESS scale .6 Reliability statistics of RESPONSIVENESS scale (cont.7 Reliability statistics of ASSURANCE scale .7 Reliability statistics of ASSURANCE scale (cont.8 Reliability statistics of EMPATHY scale. ---- 5-5 5<cs<<<+cs<s+ 44 Table 4.8 Reliability statistics of EMPATHY scale (conI. ---<c<<cs<xes 45 Table 4.9 Reliability statistics of CUSTOMER SATISFACTION scale.9 Reliability statistics of CUSTOMER SATISFACTION scale (cont.11 Exploring factor analysis for service quality scale.12 Reliability statistics and factor analysis for service quality scale - at the SECON time (COMNL.13 Exploring factor analysis for customer satisfaction scale (cont. 52 Tablet: 14 Core lations) nressnarswetsuisiiictags9023800107N000N9080210080/570/20581070.15 Regression analysis SUMMALY .16 Regression analysis summary at the second time .17 Hypotheses tested: results se sce acsemaserearresamancs nuaneaeiacsonsmaonnaxemeenern scans 58 vi LIST OF ABBREVIATIONS Abbreviation Explanation SPSS Statistical Package for the Social Sciences WTO World Trade Organization SERVQUAL Service quality model SERVPERF Service Performance model GDP Gross Domestic Product VIF Variance Inflation Factor Exploratory Factor Analysis Kaiser-Meyer-Olkin Test vii ABSTRACT Coming along with globalization, competition in international market is growing intensely.
To exist in competitive market and run business, companies need to pay more attention in improving products and services. Besides, it is necessary to maintain customers’ loyalty for sustainable future development. Moreover, the most important purpose of business is to create values to customer and the key of business success is to satisfy customers’ needs. From that reasons, the author has conducted survey and investigated the impact of service quality performance on customer satisfaction in Hanoi Daewoo hotel where service quality is considered as the key of success.
To achieve this goal, the author has used quantitative method to analyze data and recommend solutions based on previous analysis result. In details, the author reviewed theory of service quality, customer satisfaction and other previous articles. The author chose SERVPERF model as a tool to analyze statistics because of several advantages in service quality measurement. Finally, the author has founded three components namely RES-EM, ASSURANCE and RELIABLITY that explain customer evaluation of perceived service quality in Hanoi Daewoo hotel with three different coefficients in equation of satisfaction.
Three components play the important roles in service quality measurement and Daewoo hotel needs to have specific strategies to enhance three components as well as customer satisfaction.1 Background Despite years of wars, conflicts and colonization, Vietnam has been developed dramatically and has accomplished in all areas of economy, culture, education and so on. Vietnam affirms itself over the world and become an attractive destination with a series of beautiful landscapes, the most scrumptious food and the friendly people around. In economy, the ruling Communist Party had made a significant decision that was a declaration of economic renovation in 1986. From that moment, state and society which have undergone dramatic transformations made a big change in Vietnamese economy from the centrally-planned economy with state subsidies to a socialist-oriented market economy in implementation of industrialization, modernization, diversification and multilateral development of economic external relations for open-door.
Especially, Vietnam has joined in WTO which is the biggest organization of trade in 2007. It brings about a turning-point favorable to all aspects of Vietnamese economy. An expansion in favorable export market and a reduction in quota barriers for Vietnam are two of the most significant benefits. Moreover, Vietnam can speed up exporting activities and appeal to foreign investment.
Like a coin with two sides, however, the more chances Vietnamese economy has, the more challenges it faces. One of the remarkable challenges is an increase in the numbers of firms entering into Vietnamese market. This may lead to a fierce competition in market segmentation and effect on all areas of economy including manufacturing and service. After joining WTO, hospitality and tourism sectors in Vietnam are standing in front of new opportunities to develop.
As travel becomes faster and standard of living becomes higher, the numbers of guests increase and it is a source of more revenue for hospitality industry and contribute to GDP increase manually. As Vietnam economics news, hospitality sector accounts for 3. Moreover, hospitality sector creates a lot of new jobs for employees as well as reduce poverty effectively. According to statistics from Vietnam National Administration of Tourism, there are more than 1.5 million employees who work in hospitality and tourism sector every year.
On the other hand, Vietnam considers tourism as an important sector to achieve the aims of industrialization and modernization. As a result, hospitality industry should be received more and more attention and support for development in Vietnam in the future.2 Statement of problem Coming along with globalization, the numbers of firms and new investors entering into international market rocket intensely and lead to an increase in the numbers and differentiation of goods and services. This requires those firms to concentrate on satisfying the needs and wants of customers because of fierce competition. In other words, firms need to understand about customer satisfaction that is the feeling or attitude of a customer towards a product or service after it has been used.
Simply, it is the customer’s perception that his or her expectations have been met or surpassed. It is true that satisfied customers buy more and more often and they may refer their families and friends to products or services. Today, when customers buy or use products and services, they care about not only quality of products but also a series of relevant services that are reliability, responsiveness, employees’ performance and so on. The experience in several industries or firms have proved that successful service quality strategies are some of the main factors to help firms achieve customers’ loyalty and solid position in competitive market.
Hanoi Daewoo hotel is one of a series of five star hotels in hospitality sector and it runs business in service sector. Thus, quality of service in hotel is vital issue to exist and develop in competitive market. The more diversification customers’ tastes and preferences become, the higher requirement Daewoo hotel need to meet. In short, assessing and improving quality of service, enhancing the relationship between customer satisfaction and service quality play an important role to Daewoo hotel’s sustainable development in the future.3 Purpose and research question The purpose of this study is to provide a better understanding of service quality in Hanoi Daewoo hotel and examining how customers satisfy with the quality of service that they received by SERVPERF model (Cronin and Taylor, 1992).
After that, Daewoo hotel can improve its service quality and meet customers’ requirement at the highest level. To be able to achieve the stated purpose, the study will focus on three questions: - Which models does the study use to measure service quality in case of Hanoi Daewoo hotel? - What are the impacts of service quality performance on customer satisfaction in Hanoi Daewoo hotel? -How can Hanoi Daewoo hotel improve and promote service quality and customer satisfaction? 1.4 Scope of study Subject scope: The study focuses on dependent and independent variables that are used to measure customer satisfaction. Geographical scope: The study is conducted at Hanoi Daewoo hotel located 360 Kim Ma Street, Ba Dinh district, Hanoi city. Time scope: The study occurs within 3 months to research and conduct survey.
In additions, the research concentrates on the perception of customer about service quality in Daewoo hotel.5 Research methodology This study is conducted from February 17 to May 5, 2013 in Hanoi Daewoo hotel, 360 Kim Ma Street, Ba Dinh district, Hanoi city by using both qualitative and quantitative method to complete the study. In this period, the author used qualitative method to research literature review and observed employees working in hotel to learn experience from them and conduct survey with survey questions through customers or guests. Besides, using quantitative method and investigation to measure service quality are two main manners which state the research problems in very specific and set terms (Frankfort-Nachmias & Nachmias, 1992), achieve high levels of reliability of gathered data. Data collected from this research was analyzed and evaluated by SPSS in order to find out the answers for three main questions above.