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 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 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 star to 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 TABLE OF CONTENTS ABSTRACT TABLE OF CONTENT CHAPTER 1: INTRODUCTION .5 1.1 RESEARCH BACKGROUND 1.2 RESEARCH PROBLEMS .5 1.3 RESEARCH OBJECTS 1.4 RESEARCH SCOPE 1.5 RESEARCH STRUCTURE CHAPTER 2: LITERATURE REVIEW 2.1 B2B CUSTOMERS' LOYALTY 2.2 FACTORS AFFECTING HORECA CUSTOMERS' LOYALTY 10 2.2.1 PERCEIVED SERVICE QUALITY AND CUSTOMER SATISFACTION .10 2.2.1 PERCEIVED PRODUCT QUALITY AND CUSTOMER SATISFACTION .11 2.2.3 PERCEIVED PRICE AND CUSTOMER SATISFACTION .12 2.2.4 CUSTOMER RELATIONSHIP MANAGEMENT AND CUSTOMER SATISFACTION .13 2.2.5 CUSTOMER SATISFACTION AND CUSTOMER LOYALTY 14 2.3 CONTROLLING FACTORS 15 2.4 RESEARCH MODEL AND HYPOTHESES 16 CHAPTER 3: METHOLOGY .18 3.1 RESEARCH PROGRESS 18 3.2 RESEARCH APPROACH 19 3.3 MEASUAREMENT SCALES .20 3.4 QUESTIONARE DESIGN 25 3.5 SAMPLE SELECTION 25 3.6 DATA COLLECTION 26 3.7 DATA ANALYSIS 27 CHAPTER 4: DATA ANALYSIS AND RESULT .29 4.1 DESCRIPTIVE ANALYSIS 29 4.2 MEASUAREMENT ASSESSMENT 30 4.2.1 CRONBACH’S ALPHA 30 4.2.2 EFA 32 4.3 EVALUATE THE MEASUREMENT SCALES BY CFA 37 4.3.1 THE CFA RESULT FOR INDEPENDENT VARIABLE .37 4.3.2 THE CFA RESULT FOR MODERATOR VARIABLE 38 4.3.3 THE CFA RESULT FOR DEPENDENT VARIABLE 39 4.3.4 THE SATURATED MODEL .40 4.3.5 THE THEORITICAL MODEL 40 4.3.6 THE BOOTSTRAP .42 4.4 HYPOTHESIS TESTING 43 CHAPTER 5: DATA ANALYSIS AND RESULT .45 5.1 CONCLUSIONS 45 5.2 IMPLICATIONS 46 5.2 LIMITATION AND FUTURE RESEARCH .48 REFERENCES 50 APPENDECIE 58 CHAPTER INTRODUCTION 1.1 Research background According to “Vietnam National Administration of Tourism Report” (2013), in the recent years, the international visitors came to Viet Nam increase continually: 5.049.855 turns (2010), 6.014.032 turns (2011) and 6.847.678 turns (2012) Besides, attracting the number of domestic visitors rapidly 28 million (2010), 30 million (2011) and 32, 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 1.2 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 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 Ms Pham Thi Uc My, Managing Director of River Beach Resort 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 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 pricesensitive (www.nielsen.com) 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 1.3 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? 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 1.4 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 1.5 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 Peng, L.Y & Q Wang (2006) Impact of relationship marketing tactics (RMTs) on switchers and Stayers in a competitive service industry J Marketing Manag., 22: 25-59 Phuc Hong Lu and Ian Grace.B Lukoma, (2011) Customer Satisfaction towards Retailers Reichheld, F.F & Sasser, Jr., W.E (1990) Zero defections Quality comes to services Harvard Business Review, 68(5), 105-111 Shun Yin Lam, Venkatesh Shankar, M Krishna Erramilli & Bvsan Murthy (2004) Journal of the Academy of Marketing Science 2004; 32; 293 Teas, R Kenneth (1993) Expectations, Performance Evaluation and Customers’ Perceptions of Quality Journal of Marketing, 57 (October) 18-34 Xu, Y., Goedegebuure, R., &Heijden, B (2006) Customer perception, customer satisfaction, and customer loyalty within Chinese sercurities business: Towards a mediation model for predicting customer behavior Journal of Marketing, 4, 79-104 Z.S Dimitriades, (2012) Customer Satisfaction, Loyalty and Commitment in Service Oganizations: Some Evidence from Greece Management Research News, vol 29(12), 2006, pp.782-800 Zeithaml, V., Berry, L., & Parasuraman, A (1996) The behavioral consequences of service quality Journal of Marketing, 60(2), 31-46 Zeithaml, V.A (1987) Defining and Relating Price, Perceived Quality, and Perceived Value, Report No 87-101, Cambridge, MA: Marketing Science Institute 54 Zeithaml, Valarie A (1988) Consumer Perceptions of Price, Quality and Value: A Means-End Model and Synthesis of Evidence Journal of Marketing 52 (July): 2-22 Peter A & Dadson A (2013) Customer Relationship Management: A Key to Organisational Survival and Customer Loyalty in Ghana’s Banking Industry International Journal of Marketing Studies; Vol 5, No 1; 2013 55 APPENDIX Appendix 1: QUESTIONNAIRE IN ENGLISH Dear Respondent, I am Nguyen ThiThanhTrang currently a student of the program "Master of Business Administration" of International School of Business - University of Economics Ho ChiMinh City I am working on my thesis to analyze factor affecting to Horeca customers’ loyalty in domestic goodsin Ho Chi Minh City There is no right or wrong answer to any question I am only interested in your personal opinions Your answers will be treated in strict confidence and will only be used for research purposes Please turn to the next page to start with the questionnaire Thank you for your support Part I: Please check cross (X) the number that most fits your opinion Which products your company usually buy ? Domestics products Imported products Other a How often your company buy products? 1 times 2 times 3 times 4 times over times Part II: With the following statements, please check cross (X) the number that most fits your opinion (Anchored by: Strongly disagree; Disagree; Neutral; Agree; Strongly agree) 56 No Item Rating Scales Perceived Product Quality The domestic products have good quality merchandise 2 The domestic products are very satisfactory compared to other 5 competitors The domestic products offer the assortments of product Perceived Price Quality The domestic price charged is reasonable 5 The pricing policies of domestic products are attractive Domestic product supplied is equivalent to its price I will continue to stay with domestics products unless the price is significantly higher of the products Perceived Service Quality Understanding of my business and product needs by the staff Reliability in delivering products (accurately, on time, etc.) 10 Ease of contacting and ordering products Promptness in advising about any problems with merchandise 11 57 Customer Relationship Management 12 The domestic product company’s employees give customers individual 5 5 5 5 attention 13 The domestic product companies give my company feedback and information on their products and services 14 The domestic product company’s employees regularly meet customer to learn their current and potential needs for new products or service development 15 The domestic product companies understand my company business and give offers matching with my company’s needs Customers’ Satisfaction 16 In general, my company is very satisfied with the services and domestic products offered 17 Overall, domestic product companies are good companies to business with 18 Overall, the domestic products and service comes up to my company’s expectations 19 Buying domestic products and service are usually satisfying experiences 58 Customers’ Loyalty 20 My company considers domestic products is the first choice 21 My company will more business with merchandising domestic products in the future 22 My company has said positive things about domestic products 23 I have encouraged other companies to merchandize domestic products Part III: Personal information a Scope of activities of the company Hotel Restaurant Bar Cafe b Gender Male Female c Age < 25 25-35 36-50 > 50 d Which your department of company Kitchen Purchsing Owner Other Thank you for your support!!! 59 BẢNG CÂU HỎI KHẢO SÁT Xin chào cácAnh/Chị, Tôi tên Nguyễn Thị Thanh Trang –hiện học viên cao học chương trình thạc sĩ Viện Đào Tạo Quốc Tế (ISB) – Trường Đại Học Kinh Tế Thành phố Hồ Chí Minh Hiện nay, thực nghiên cứu vấn đề “ Những nhân tố định trung thành khách hang Horeca (nhà hàng, khách sạn, bar cafe) sản phẩm nội địa Thành phố Hồ Chí Minh” Rất mong anh/chị dành thời gian thực khảo sát bên Đồng thời cam kết thông tin anh/chị cung cấp giữ bí mật phục vụ cho mục đích nghiên cứu Nếu có đóng góp, ý kiến quan tâm đến kết khảo sát, anh/chị vui long thông tin qua địachỉ email trangnguyen0424@gmail.com Part I: Xin vuilòngđánhchéo (X) vào ô anh/ chịchọn: b Sảnphẩmmàcông ty bạnmuathườngxuyênnhấtthuộcloạihìnhnàosauđây? Sảnphẩmnộiđịa Sảnphẩmngoạinhập Other c Công ty bạnmuasảnphẩmbaonhiêulầntrongmộttháng? 1 lần 2 lần 3 lần 4 lần Trên lần Part II: Đốivớinhữngcâuphầnnày, anh/chịvuilòngđánhdấuchéo (X) đểlựachọnmứcđộđánhgiácủaanh/chị Xin vuilòngchỉchọn câutrảlờitheoquyước: Hoàntoànđồng ý4 Đồng ý3.TrungHòa2.Khôngđồng ý1.Hoàntoànkhôngđồng ý 60 ST Cácchỉtiêuđánhgiá Mứcđộđánhgiá T Chấtlượngsảnphẩm (Perceived Product Quality) Sảnphẩmnộiđịacóchấtlượngtốt 2 Chấtlượngcủasảnphẩmnộiđịarấtcạnhtranh so vớiđốithủ 3 Sảnphẩmnộiđịacóchủngloạirấtđadạng Chínhsáchgiá ( Perceived Price Quality) Giácủasảnphẩmnộiđịarấthợplí 5 Chínhsáchgiácủasảnphẩmnộiđịarấthấpdẫn Sảnphẩmnộiđịatươngđươngvớigiátiềncủanó Sẽtiếptụcmuahàngnộiđịatrừkhigiácảcủanótăngđộtbiến Chấtlượngdịchvụ ( Perceived Service Quality) Công ty nộiđịa am hiểuvềlĩnhvựckinhdoanhvànhucầusảnphẩm Tin cậytrongviệcphânphốihànghóađếnkháchhàng 10 Dễdàngliênhệvàđặthàng Nhanhchóngtrongviệcgiảiquyếtcácvấnđềliênquanđếnhoạtđộngmuahàng 11 Quảnlíquanhệkháchhàng (Customer Relationship Management) 61 12 Nhânviêncủacông ty 5 5 sảnphẩmnộiđịađemđếnchokháchhàngquantâmcánhân 13 Nhânviêncủacông ty sảnphẩmnộiđịaphảnhồithông tin vềsảnphẩmchấtlượngdịchvụcủahọ 14 Nhânviêncủacông ty sảnphẩmnộiđịathườngxuyêngặpgỡtrựctiếpkháchhàngđểtìmhiểunhucầuh iệntại, nhucầutiềmnăng 15 Công ty sảnphẩmnộiđịahiểuvềlĩnhvựckinhdoanhcủatôivàđưaranhữngđềnghịsản phẩmphùhợp Sựthỏamãncủakháchhàng ( Customers’ Satisfaction ) 16 Công ty tôirấtthỏamãnvớichấtlượngdịchvụvàsảnphẩmnộiđịa 17 Nhìnchung, rấttốtkhigiaodịchvớicông ty bánsảnphẩmnộiđịa 18 Nhìnchung, sảnphẩmnộiđịađạtđượcsựkìvọngcủatôi 19 Việcmuahàngsảnphẩmnộiđịaluônđemđếnchotôicảmgiáchàilòng Lòngtrungthànhcủakháchhàng ( Customers’ Loyalty) 20 Sảnphẩmnộiđịaluônlàsựlựachọnđầutiêncủatôi 21 Sẽtiếptụcmuasảnphẩmnộiđịatrongtươnglai 62 22 Ấntượngtốtkhimuasảnphẩmnộiđịa 23 Sẽgiớithiệusảnphẩmnộiđịachocácđốitáccủamình Part III: Thông tin vềcông tycủaAnh/chị: e Lĩnhvựchoạtđộngcủacông ty Kháchsạn Nhàhàng Bar Cafe f Giớitínhcủabạn Nam Nữ g Độtuổicủabạn < 25 25-35 36-50 Muahàng Chủkinhdoanh > 50 h Bộphậncủabạntrongcông ty Bếp Khác Xin chânthànhcảmơnsựhợptáccủaquýanh/chị 63 Appendix 3: Regression Weight (theoretical model) 64 Appendix 4: Standardized Regression Weights (theoretical model) 65 Appendix 5: Covariances (theoretical model) Appendix 6: Correlations (theoretical model) 66 Appendix 7: Variances (theoretical model) 67 Appendix 8: Squared Multiple Correlations (theoretical model) 68 ... 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:... key factors affecting the Horeca customers loyalty in domestic goods at Viet Nam? And How is impact of these factors Horeca customers loyalty in domestic goods at Viet Nam? According to Saunders... restaurants, hotels from star to 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