UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ NGUYEN THI THANH TRANG KEY FACTORS AFFECTING HORECA CUSTOMERS’ LOYALTY IN DOMESTIC GOODS AT HO CHI MINH CITY 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 ------------------------------ NGUYEN THI THANH TRANG KEY FACTORS AFFECTING HORECA CUSTOMERS’ LOYALTY IN DOMESTIC GOODS AT HO CHI MINH CITY ID: MASTER OF BUSINESS (Honours) SUPERVISOR: PhD. Nguyen Dong Phong Ho Chi Minh City – Year 2014 TIEU LUAN MOI download : skknchat@gmail.com ABSTRACT With potential Horeca (hotel, restaurant, café) market, recently, companies interested in Vietnam began looking for opportunities to distribute goods to the resorts, restaurants, hotels. According to Ms. Le Thi Thanh Lam, Deputy General Director of Saigon Food, Vietnam enterprises are most highly valued by the market segment very large quantity of goods.
To bring Vietnamese products have high quality standards in the consumer market for this is fussy, many years ago, Vietnamese enterprises start looking for business opportunities from restaurants, hotels from 3 star to 5 star, creating value chain linkages between business systems and Horeca. This study aims to investigate which factor affecting to Horeca customers’ loyalty in domestic goods. The result showed that Vietnamese enterprises need to improve how to have the opportunity to enter into a fertile market and equally difficult stormed the industry hard Keywords: key factors, Horeca shoppers’ loyalty, domestic goods Abbreviations Horeca : Hotel, Restaurant, Cafe 1 TIEU LUAN MOI download : skknchat@gmail.com TABLE OF CONTENTS ABSTRACT .1 TABLE OF CONTENT.8 CHAPTER 2: LITERATURE REVIEW. FACTORS AFFECTING HORECA CUSTOMERS' LOYALTY.
PERCEIVED SERVICE QUALITY AND CUSTOMER SATISFACTION. PERCEIVED PRODUCT QUALITY AND CUSTOMER SATISFACTION. PERCEIVED PRICE AND CUSTOMER SATISFACTION. CUSTOMER RELATIONSHIP MANAGEMENT AND CUSTOMER 2 TIEU LUAN MOI download : skknchat@gmail.
CUSTOMER SATISFACTION AND CUSTOMER LOYALTY. RESEARCH MODEL AND HYPOTHESES .27 CHAPTER 4: DATA ANALYSIS AND RESULT. EVALUATE THE MEASUREMENT SCALES BY CFA. THE CFA RESULT FOR INDEPENDENT VARIABLE.
THE CFA RESULT FOR MODERATOR VARIABLE .38 3 TIEU LUAN MOI download : skknchat@gmail. THE CFA RESULT FOR DEPENDENT VARIABLE. THE SATURATED MODEL. THE THEORITICAL MODEL .43 CHAPTER 5: DATA ANALYSIS AND RESULT.
LIMITATION AND FUTURE RESEARCH .58 4 TIEU LUAN MOI download : skknchat@gmail. Research background According to “Vietnam National Administration of Tourism Report” (2013), in the recent years, the international visitors came to Viet Nam increase continually: 5. Besides, attracting the number of domestic visitors rapidly 28 million (2010), 30 million (2011) and 32, 5 million (2012). Thus demand about goods for HoReCa channel is so high.
HoReCa is an iconic business term which primarily refers to a sector of the food service industry, to establishments which prepare and serve food and beverages. The term is a syllabic abbreviation to the words Hotels & Restaurant Category but to some it also may mean Hotel/Restaurant/Cafe. Capturing the trends and potential of this HoReCa segment, many companies both foreign and domestic try to achieve market share. That means the domestics companies have to face the toughest challenges when the foreign firms entering Vietnam market.
The issues are how the domestic firms survive and develop in the local market. Research Problems In Viet Nam, there are many high level hotels, resorts, restaurants are in business, and in parallel international visitors increase shapely, it is easy to understand the demand of HoReCa segment for goods is so large. This channel always in high demand for many essential products for operational supply food, rest, entertainment, vendors are required to ensure that products bearing the luxury, elegance, safety and can provide large quantities. Therefore, most of the 3-5 star 5 TIEU LUAN MOI download : skknchat@gmail.com luxury hotels, restaurants, cafe, using foreign goods; the capacity of domestic manufacturers did not meet the strict requirements of this market.
However, research by experts in the field of restaurants, hotels, psychology international tourists to Vietnam always wants to enjoy the special dishes as well as Vietnamese products to try to find learn about the unique culture of Vietnam. To meet this tastes, in recent years the restaurants, luxury hotels in the country have begun to look toward domestic manufacturers to order. According to a representative of the Caravelle Hotel, this hotel is increasingly focusing on Vietnamese cuisine and met with a number of vendors such as powder at the Saigon Food for the exchange of product supply issues for buffet at the hotel. Pham Thi Uc My, Managing Director of River Beach Resort 4 star, said investors restaurants, hotels, resorts, firms providing travel services, resort only to trust and use of foreign goods to avoid risks in the process of serving customers, but now many Vietnam product has resonated with quality, reasonable price, more so investors tend search for local suppliers to cooperate.
Horeca businesses tend not to use the products sold on the mass market to luxury class claims in the eyes, and unique visitors. At the same time, investors still hesitated choice because if you use the unqualified products, increasing quality will cause costs to change when a new product or change providers several times. That's why even though this leads to long wanted to bring Vietnamese goods to promote the use of image, style of Vietnamese culture, but the hotel is very picky and does not have many local partners. 6 TIEU LUAN MOI download : skknchat@gmail.com Therefore, these companies want to put products into Vietnam this channel should be carefully studied and the technical standards necessary to make distinctions new products to easily conquer this difficult customers.
According to “Nielsen Shopper Trends” (2012), Vietnam has been faced with bad situation economic. It has led to some changes in shoppers’ behaviors that have become more price- sensitive (www. They change to look at the brand in domestic to save money. It is necessary to find out the factors to which determine consumer loyalty to attract and retain customers.
It also helps the firms make decisions in order to select the most appropriate strategies for their goals. Research Objectives The research objectives are: - To identify factors affecting shopper Horeca customers’ loyalty in domestic goods at Viet Nam. - To determine the impact of each factor on shopper loyalty Based on the research object, the main purpose of this thesis is to identify what factors have impact on Horeca shoppers’ loyalty in domestic goods at Viet Nam and examine how these factors influence their decision of buying domestic goods in Vietnam. The research questions are: estic goods at Viet Nam? 7 TIEU LUAN MOI download : skknchat@gmail.com Understanding relationship between main factors affecting customers purchase decision is an important role for domestic enterprises to satisfy customers’ demand and to have available strategies in is market segment.
Research Scope This study focuses on Horeca customers in Ho Chi Minh City; include 3-5 hotels, restaurants, and café around big center district at Ho Chi Minh City: district 1,2,3,4,5,7,10, BinhThanh, PhuNhuan, Tan Binh, Thu Duc. Research Structure Corresponding to this process below structure is proposed for this research: • Chapter 1: Introduction to introduce research background, research problem, research objective, research question, research scope as well as structure of the research. • Chapter 2: Literature review. This chapter reviews theories and selects the research’s factors as well as formulates the research hypotheses and model.
• Chapter 3: Research methodology. This chapter provides general idea how the research is designed and implemented. • Chapter 4: Data analysis, result and finding discussion. This chapter translates data collected from survey, analyses data as well as discusses the result finding in connection with theory.
• Chapter 5: Conclusion, implication, limitation and future research. This Chapter concludes the research finding, provides implication, further suggestion as well as research limitation. 8 TIEU LUAN MOI download : skknchat@gmail. Customer loyalty has a powerful impact on firms’ performance and is considered by many companies an important source of competitive advantage (Heskett, Sasser, and Schlesinger 1997; Rust, Zeithaml, and Lemon 2000; Woodruff 1997).
With loyal customers, companies can maximize their profits. Loyal customers are willing to (1) purchase more frequently (price insensitivity), (2) try the firm’s new products or services (repurchase intention), (3) recommend products and services to others (word-of-mouth), and (4) give companies suggestions (complaint behavior) (Reichheld&Sasser, 1990). While much research has focused on customer loyalty in business-to-consumer (B2C) contexts, customer loyalty is important in business-to-business (B2B) contexts as well (Shun Yin Lam, Venkatesh Shankar, M. Krishna Erramilli and Bvsan Murthy; 2004).
In organizational buyer- seller relationships, loyal buyers are more likely to focus on long-term benefits and engage in cooperative actions beneficial to both partners in a relationship than disloyal buyers, thus enhancing the competitiveness of both partners and reducing transaction costs (Doney and Cannon 1997; Ganesan 1994; Morgan and Hunt 1994). Indeed, customer loyalty constitutes an underlying objective for strategic market planning (Kotler 1997). 9 TIEU LUAN MOI download : skknchat@gmail. Key factor affecting of Horeca Customer Loyalty 2.
Perceived Service Quality and Customer Satisfaction Service quality is defined as “an overall assessment of service by the customers” (Lewis and Booms, 1983, cited in Ganguli and Roy, 2010). Researchers and practitioners interest in service quality is clear, reflected in the fact that poor quality compromises a firm’s ability to effectively differentiate itself in the marketplace, potentially driving away customers (Lovelock and Wirtz, 2011). Indeed, the quality of a service is sometimes more important for customers than the cost of acquiring that service (Ranaweera and Neely, 2003). Therefore, to satisfy customers, a service organization needs to understand how customers evaluate the quality of the service they receive and the basis on which they become loyal to that organization (Kandampully, 1998).
Besides, the superiority of the service offered by an organization depends on customer perception of service quality and not on the organization’s perception of the service offered (Lobo, et al. The comparison that customers made between these expectations and the perception of the method by which the service has been delivered is known as the perceived service quality (Lehtinen and Lehtner, 1982; Lewis and Booms, 1983; Parasuraman et la., 1983, 1985, 1991, 1994; Gronroos, 1984; Zeithaml, 1987; Xu, et al., 2006, cited in Obeidat, et al. Perceived service quality is defined as “a global judgment of attitude relating to the superiority of a service” (Parasuraman et al. In simple words Jiang and Wang, (2006,cited in Ishtiaq, 2012) defined it as the consumer’s evaluation of the service performance received and how it compared with their expectation.
Consequences of perceived service quality can be identified from customers’ behavioral intentions such as repurchase intentions, word of mouth, and customer loyalty (Zeithaml, Berry, Parasuraman, 1996). Most researchers suggested that 10 TIEU LUAN MOI download : skknchat@gmail.com high service quality resulted in high customer satisfaction (Parasuraman, Zeithaml, and Berry, 1985, 1988). Teas (1993) also mentioned that perceived serviced quality was accumulation of customer satisfaction.Thus, the following hypothesis is proposed: H1: There is a positive relationship between perceived service quality and Horeca customer’s satisfaction. Perceived Product Quality and Customer Satisfaction According Garvin (1987) proposes eight dimensions of product quality such as: Performance which is refers to a products primary operating characteristics; Features: These are additional features which are also known as the bells and whistles of the product; Conformance which is described as the extent to which a product will operate properly over a specified period of time under stated conditions of use; Reliability: the probability that will operate properly over a specified period of time under stated conditions of use; Durability: It is the amount of use a customer gets out of use of a product before it physically deteriorates or until replacement is preferable; Serviceability: the speed competency and courtesy of repair; Aesthetics: How a product appeals to all the five senses of a human; Customer perceived quality: Customers perception of a products quality based on reputation of the firm.