Lecturer: Dr TRAN UT ASSIGNMENT – BMBR5103 CONTENT ACKNOWLEDGMENTS CHAPTER 1: INTRODUCTION Reason for choosing topic .3 Research objectives 2.1 The overall goals 2.2 Specific objectives Research questions .4 The research hypothesis 5 The practical significance of the subject .6 Structure of topic CHAPTER 2: LITERATURE REVIEW Definition Business Research Theoretical Literature 2.1 Kano theory of customer satisfaction 2.2 Queuing theory of customer satisfaction .12 Empirical Literature 14 3.1 What is Customer Satisfaction? 14 3.2 Techniques to Measure Customer Satisfaction 17 3.3 Relation between Customer Satisfaction and Service Quality 17 3.4 Customer Satisfaction Index Model ( CSI Model) 18 Research Model 19 Conclusion 21 Student: LE ANH TUAN Student: HA TRIEN BANG MBAOUM0512 MBAOUM0512 Class 1C Class 1C ID: 2448512 ID: 2448444 Page Lecturer: Dr TRAN UT ASSIGNMENT – BMBR5103 CHAPTER 3: RESEARCH METHODOLOGY 22 Research Framework 22 Research Process 23 Study Design 24 3.1 Qualitative Methods 24 3.2 Quantitative Methods 24 3.3 Scale construction 28 Methods of data analysis 30 CHAPTER 4: RESEARCH RESULTS AND DISCUSSION 33 Research results 33 1.1 Sample characteristics 33 1.2 Scale testing 33 Conclusion 42 CHAPTER 5: SUMMARY, CONCLUSION AND RECOMMENDATIONS 43 Summary 43 Conclusion 43 Recommendation 44 References 45 Student: LE ANH TUAN Student: HA TRIEN BANG MBAOUM0512 MBAOUM0512 Class 1C Class 1C ID: 2448512 ID: 2448444 Page Lecturer: Dr TRAN UT ASSIGNMENT – BMBR5103 ACKNOWLEDGMENTS First and foremost, we would like to thank us lecture Tran Ut, her continued support and mentorship throughout program Her encouragement has been invaluable throughout this entire process CHAPTER 1: INTRODUCTION Reason for choosing topic Today, the competitive environment is becoming increasingly fierce, the wisdom of the enterprise is to bring higher customer satisfaction than the competitors in the same industry, because the satisfaction of customer proportional to the profits of the business which brings the success of business with customer loyalty to their brand In the business strategy of the company always toward to customer and considered the most important strategy, this has made international brands such as Samsung, Nike, etc So how to understand and responded to customer needs satisfied, that is the difficult question, and is the secret of each company, and tool in the competitive environment And DUC PHAT is the same, since its establishment and development constantly trying to give the best customer satisfaction with all abilities Accordingly, DUC PHAT has always in the customer loyalty Be researching and improving for customer satisfaction has always been maintained and developed by DUC PHAT With the above reason I chose topic ” IMPROVING CUSTOMER SATISFACTION FOR PACKAGED OF THE DUC PHAT COMPANY IN HO CHI MINH CITY “ to research on the subject Business Research Method Student: LE ANH TUAN Student: HA TRIEN BANG MBAOUM0512 MBAOUM0512 Class 1C Class 1C ID: 2448512 ID: 2448444 Page Lecturer: Dr TRAN UT ASSIGNMENT – BMBR5103 Research objectives 2.1 The overall goals This study was conducted with the purpose of evaluating customer satisfaction of Birthday Cake packaged of DUC PHAT company in HCM city; based on which give out a number of solutions to help companies and managers can summarize the experiences to further enhance product quality in order to improve customer satisfaction to the demands and competitive environment of the society 2.2 Specific objectives To achieve the overall objective mentioned above, research should focus on the following specific objectives:  Identify factors about product affecting customer satisfaction  Measure the impact of these factors about product to customer satisfaction  Find out the differences may have on the level of customer satisfaction for product between customer groups by characteristics such as: gender, age, educational level, etc…  Proposed some solutions to improve customer satisfaction for Birthday Cake packed of DUC PHAT’s company Research questions To achieve the research objectives, questions to gather information that will focus on the following main contents: Student: LE ANH TUAN Student: HA TRIEN BANG MBAOUM0512 MBAOUM0512 Class 1C Class 1C ID: 2448512 ID: 2448444 Page Lecturer: Dr TRAN UT ASSIGNMENT – BMBR5103  What are quality factors to affect customer satisfaction for DUCPHAT’s packaged?  How does the impact of product quality factors to the satisfaction of the customers?  Is there a difference in the level of customer satisfaction for product between customer groups by characteristics?  From this study, work out how to improve our product to meet our customer needs? The research hypothesis As product quality, price, packaging and label play an important role and affect customer satisfaction in their purchase process A hypothesis about the relationship between the quality of training and the satisfaction of participants is set out as follows:  H1: Product quality includes factors that create good quality products The higher product quality as satisfied customer with consumer products, Hypothesis is: there is a relationship same way between product quality and customer satisfaction  H2: The price is important, indispensable in commodity trading The price is a tool to increase competitive advantage, low price will make customers happy, and the hypothesis is the assumption that the same way between price and customer satisfaction  H3: Packaging is a very important factor in the purchasing activities Customers will not be happy or accept poor quality packaging, not in accordance with the requirements of the product Hypothesis would be: is there a relationship in the same direction packaging and customer satisfaction  H4: Brands play an equally important role in creating quality products for the organization Brand has long years…, which will create customer confidence So, the higher the brand, customer more satisfied with the purchase of that product Since then, the hypothesis is set: there is the same relationship between the brand and customer satisfaction Student: LE ANH TUAN Student: HA TRIEN BANG MBAOUM0512 MBAOUM0512 Class 1C Class 1C ID: 2448512 ID: 2448444 Page Lecturer: Dr TRAN UT ASSIGNMENT – BMBR5103 The practical significance of the subject The practical significance of the subject will be the core base to give benefits for the following subjects:  Company can improve, further improve product quality to customer satisfaction;  Research results can help managers have a holistic view of product quality, as a basis to help build orientation, policies and improve product quality better, satisfy customer requirements and society Structure of topic Chapter 1: Introduction Chapter 2: Literature Review Chapter 3: Research Methodology Chapter 4: Research Result and Discussion Chapter 5: Summary, Conclusion and Recommendation Student: LE ANH TUAN Student: HA TRIEN BANG MBAOUM0512 MBAOUM0512 Class 1C Class 1C ID: 2448512 ID: 2448444 Page Lecturer: Dr TRAN UT ASSIGNMENT – BMBR5103 CHAPTER 2: LITERATURE REVIEW Definition Business Research A systematic inquiry aimed at providing information to solve problem [Cooper and Emory (1995) defined research] Research is the process of systematically gathering and analyzing information in order to gain knowledge and understanding [Kevin (1992) in his book entitled “Methods for Business Research” stated] An organized, systematic, databases, critical, objective, scientific inquiry or investigation into a specific problem [Sekaran (2003) defined] A systematic and objective process of gathering, recording and analyzing data for aid in making decision [Zikmund (2003) defined Business Research] In a business context, research is defined as an organized and systematic process of investigation to address a specific business problem or issue To research for this literature review, we have part included theories and empirical researches that are relevant for understanding the customer satisfaction: Theoretical Literature The research of theories about customer satisfaction will have three theories in the time sequence It will be indicated clearly by Kano theory and Queuing theory that will be introduced in this section Every theory has different outlook and the following’s detail of each theory: Student: LE ANH TUAN Student: HA TRIEN BANG MBAOUM0512 MBAOUM0512 Class 1C Class 1C ID: 2448512 ID: 2448444 Page Lecturer: Dr TRAN UT ASSIGNMENT – BMBR5103 2.1 Kano theory of customer satisfaction The Kano model is a theory of product development and customer satisfaction developed in the 80s by Professor Kano The author indicated that customer needs are never changing, this means with following example: As a customer who purchased a lot of music, their needs were simple The customer only wanted clearer sound and something smaller to store The music industry responded and introduced the cassette The cassette was indeed smaller It did not fade out and then back in with that annoying “click” that my 6-track tapes used to have The customer was pleased with their cassette collection And then with no long time, the music industry introduced something called a CD – a compact disc The CD offered better clarity, more storage capacity and the ability to jump to specific songs, or shuffle the order of their play Best of all, one never had to rewind! Through that as a customer, their needs changed In the move to CDs, they did not realize their needs had changed but the music industry, through research, keeping up with the competition and advances in technology, delighted me with new product offerings Even today as my CDs are dust covered because I only utilize my iPod, new advances in music technology are being made to further address music customer needs According to Kano is that customer satisfaction is proportional to the extent to which the product or service is fully functional Based on that he give the model with three types of requirements the following:  Satisfying basic needs: Allows a company to get into the market  Satisfying performance needs: Allows a company to remain in the market  Satisfying excitement needs: Allows a company to excel, to world class Student: LE ANH TUAN Student: HA TRIEN BANG MBAOUM0512 MBAOUM0512 Class 1C Class 1C ID: 2448512 ID: 2448444 Page Lecturer: Dr TRAN UT ASSIGNMENT – BMBR5103 Figure 2.1: Kano Model  For satisfying basic needs: This model is the same Maslow’s needs theory to obtain high satisfaction is first to have to obtain basic satisfaction with needs One of the main points of assessment in the Kano model is the threshold attributes These are basically the features that the product must have in order to meet customer demands If this attribute is overlooked, the product is completely incomplete If a new product is not examined using the threshold aspects, it may not be possible to enter the market This is the first and most important characteristic of the Kano model The product is being manufactured for some type of consumer base, and therefore this must be a crucial part of product innovation Threshold attributes are simple components to a product However, if they are not available, the product will soon leave the market due to dissatisfaction The attribute is either there or not An example of a threshold attribute would be a steering wheel in a vehicle The vehicle is no good if it is not able to be steered Student: LE ANH TUAN Student: HA TRIEN BANG MBAOUM0512 MBAOUM0512 Class 1C Class 1C ID: 2448512 ID: 2448444 Page Lecturer: Dr TRAN UT ASSIGNMENT – BMBR5103 These needs are typically “unspoken.” If these needs are not fulfilled, the customer will be extremely dissatisfied This includes a clean bathroom, clean linens and a pleasant in the air When we book a reservation at a hotel, we not request a clean room but this implies our expected about it If this basic need is not met, we will be extremely dissatisfied The same Maslow's needs theory to achieve safe needs must first achieve physiological needs and this is too When achieving this satisfaction is to continue Satisfying performance needs to remain in the market for a company Kano’s theory for this problem is that if a product or service wants into market is first thing which have to satisfy customer’s basic needs  For Satisfying performance needs: These needs are different from the basic needs, performance needs are typically “spoken”, and this means that customer needs are expressed Kano confirmed for this problem that if a company has a high-performance attributes will have a competitive advantage which compare to competitors because performance attributes are those for which more is generally better, and will improve customer satisfaction Using the hotel example again, “spoken” needs could be Internet access, a room away from the elevators, a non-smoking room, etc Conversely, an absent or weak performance attribute reduces customer satisfaction The price a customer is willing to pay for a product is closely tied to performance attributes So the higher the performance attribute, the higher the customers will be willing to pay for the product Performance needs are slogan of each firm which also their business strategy for product or service toward For example computer needs, although laptop is more expensive than other normal computer but with its characteristics can bring everywhere so, customer is willing to buy with it this And with Coop- Student: LE ANH TUAN Student: HA TRIEN BANG MBAOUM0512 MBAOUM0512 Class 1C Class 1C ID: 2448512 ID: 2448444 Page 10 Lecturer: Dr TRAN UT ASSIGNMENT – BMBR5103 In which:  Y: customer satisfaction  B0: block coefficient  εi: Random error  B1, B2, B3, B4: The overall regression coefficient of ( i> )  X1: product quality  X2: price  X3: packing  X4: brand name Multivariate regression analysis to evaluate the relevance of the model, regression method implemented as methods into turn (Enter), this is the default method in the SPSS 16.0 program The researchers use the coefficient of determination R ² (R-Square) to assess the relevance of the research model, the coefficient of determination R ² is shown as a function does not reduce the number of independent variables included in the model shape; however, not equations with more variables will be more consistent with data, R ² has tend to be a optimism factor of measure scale the appropriateness of the model to the data in the event of more an explanatory variable in the model The F test in analysis of variance if the dependent variable relationship with all of the independent variables and if the coefficient Sig of F is less than 0.05 shows the building model fit the data; otherwise, there is no basis to conclude that the model constructed in accordance with the data Besides, the need to check the phenomenon of correlation coefficient with the DurbinWatson (not occur autocorrelation if = 0.5 and significance level of the Bartlett test≤ 0.05; system load factor (factor loading)> = 0.5; (3) the scale is accepted as the total variance extracted> = 50%; (4) Eigenvalue coefficient> 1; (5)different load factors of a variable coefficient observed between the factor ≥ 0.3 Student: LE ANH TUAN Student: HA TRIEN BANG MBAOUM0512 MBAOUM0512 Class 1C Class 1C ID: 2448512 ID: 2448444 Page 33 Lecturer: Dr TRAN UT ASSIGNMENT – BMBR5103 1.2.1.The Cronbach Alpha test Reliability Statistics Quality scale: Cronbach's Case Processing Summary Alpha Based on N % Cronbach's Standardized Alpha Cases Valid 530 100.0 0 530 100.0 Excludeda Total N of Items Items 0.760 0.760 Item-Total Statistics Corrected Squared Cronbach's Item-Total Multiple Alpha if Item Correlation Correlation Deleted Scale Mean if Scale Variance Item Deleted Products to ensure food if Item Deleted 14.66 7.317 0.548 0.326 0.710 Soft cake Consistent flavor 14.67 14.76 7.217 7.476 0.617 0.548 0.392 0.327 0.685 0.710 Fresh 14.64 8.110 0.448 0.216 0.744 Using advanced materials 14.63 7.816 0.482 0.241 0.733 safety Results calculated Cronbach's Alpha scale with items to product quality is satisfactory, namely: Alpha coefficient = 0760> 0.6 and Corrected Item-Total Correlation of scale are greater than 0.3 So in the EFA analysis, variables of this scale is retained Student: LE ANH TUAN Student: HA TRIEN BANG MBAOUM0512 MBAOUM0512 Class 1C Class 1C ID: 2448512 ID: 2448444 Page 34 Lecturer: Dr TRAN UT ASSIGNMENT – BMBR5103  Scale of prices Reliability Statistics Cronbach's Alpha Based on Cronbach's Alpha Standardized N of Items Items 0.609 0.610 Item-Total Statistics Scale Mean if Scale Item Deleted Variance Corrected Squared Cronbach's if Item-Total Multiple Alpha if Item Correlation Deleted Item Deleted Correlation Prices to suit every 7.23 2.062 0.468 0.254 0.435 7.32 2.046 0.479 0.259 0.418 7.41 2.364 0.315 0.099 0.653 pocket The price is low compared with the volume and quality of product Price is lower than other companies Student: LE ANH TUAN Student: HA TRIEN BANG MBAOUM0512 MBAOUM0512 Class 1C Class 1C ID: 2448512 ID: 2448444 Page 35 Lecturer: Dr TRAN UT ASSIGNMENT – BMBR5103 Cronbach Alpha coefficients of the price scale = 0609> 0.6 and Corrected Item-Total Correlation are greater than 0.3 This shows that the scale is satisfactory, and observed variables were retained in the EFA analysis Scale on packaging Reliability Statistics Cronbach's Cronbach's Alpha Based on Standardized Alpha Items 0.738 N of Items 0.734 Item Statistics Mean Std Deviation N Eye–catching packaging/ attractive 3.28 0.891 530 Unique packaging/ newfangled 3.44 0.852 530 Packaging looks modern/ luxury 3.54 0.889 530 Packing fully reflect the information / 3.41 0.966 530 3.41 0.966 530 content necessary Packing fully reflect the information / content necessary Student: LE ANH TUAN Student: HA TRIEN BANG MBAOUM0512 MBAOUM0512 Class 1C Class 1C ID: 2448512 ID: 2448444 Page 36 Lecturer: Dr TRAN UT ASSIGNMENT – BMBR5103 Item-Total Statistics Scale if Mean Scale Item Variance Deleted Eye–catching packaging/ Corrected Squared Cronbach's if Item-Total Multiple Alpha if Item Item Deleted Correlation Correlation Deleted 13.81 7.698 0.345 0.747 Unique packaging/ newfangled 13.66 7.407 0.445 0.712 Packaging looks modern/ luxury 13.56 7.344 0.428 0.718 Packing 13.68 6.161 0.647 0.631 13.68 6.161 0.647 0.631 attractive fully reflect the information / content necessary Packing fully reflect the information / content necessary From the above results, the Cronbach alpha coefficient of the scale of packaging = 0738> 0.6 and Corrected Item-Total Correlation are greater than 0.3 This suggests that the scale is satisfactory, and observed variables were retained in the EFA analysis  Brand Scale Reliability Statistics Cronbach's Alpha Cronbach's Alpha Based on Standardized Items 0.618 Student: LE ANH TUAN Student: HA TRIEN BANG 0.614 MBAOUM0512 MBAOUM0512 N of Items Class 1C Class 1C ID: 2448512 ID: 2448444 Page 37 Lecturer: Dr TRAN UT ASSIGNMENT – BMBR5103 Item-Total Statistics Scale Corrected Scale Mean if Variance Item Deleted Squared Cronbach's if Item-Total Multiple Alpha if Item Correlation Deleted Item Deleted Correlation Brand reflects the 9.78 4.998 0.261 0.072 0.642 quality of product Brand creates to trust 9.59 4.885 0.359 0.133 0.575 9.80 3.941 0.516 0.324 0.452 9.88 4.004 0.467 0.295 0.491 and loyalty Brand shows the rank Brand shows widespread consumer From the above results we find Cronbach alpha coefficient of the scale brand = 0.618> 0.6 and Corrected Item-Total Correlation are greater than 0.3 However observed variables br1 Corrected Item-Total Correlation = 0.261