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VIETNAM NATIONAL UNIVERSITY HOCHIMINH CITY

INTERNATIONAL UNIVERSITY

SCHOOL OF BUSINESS

AN INVESTIGATION INTO CUSTOMER

SATISFACTION AND CUSTOMER LOYALTYON COFFEE PRODUCTS AND SERVICES

A CASE OF POREVOL COFFEE SHOP IN HCMC A thesis proposal

submitted to

the School of Business Administration

in partial fulfillment of the requirement of the Degree of BACHELOR OF

ART

Students Name: CAO XUAN TUNG- BAIU09174

Advisor: PhD. HO NHUT QUANG

HO CHI MINH CITY, February 2013

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AN INVESTIGATION INTO CUSTOMER

SATISFACTION AND CUSTOMER LOYALTYON COFFEE PRODUCTS AND SERVICES

A CASE OF POREVOL COFFEE SHOP IN HCMC

APPROVED BY: Advisor APPROVED BY: Committee,

________________________ ___________________________________

Ho Nhut Quang, PhD Ho Nhut Quang, PhD, Chair

___________________________________Vo Tuong Huan, Secretary

___________________________________H Thanh Phong, Assoc.Prof.

___________________________________ Nguyen Trung Thang, MBA

___________________________________

Nguyen Nhu Tung, MBA

THESIS COMMITTEE

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ACKNOWLEDGMENTS

During the time researching and processing the data to complete this thesis, I

faced a lot of problems and challenges. Therefore, it is pleasure for giving thankful to all

of the people who helped me to get the job done.

First of all, I would like to give a greatest gratitude to my supervisor, Mr. Ho

Nhut Quang for his kindness guidance and useful advices during the process.

Secondly, I want to give thankful to all of the staff in the International University

for helping me get the useful documents and materials that related to my topic.

I want to give my word of grateful to all of participants in the committee who

actually gives their comments and suggestions that helped me to improve my thesis.

Last but not least, I want to thank my family and my friends for their kindness

support during the time.

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TABLE OF CONTENTS

CHAPTER1: INTRODUCTION...................................................................................... 1

1.1 Background____________________________________________________1

1.2 Research problem statement_______________________________________2

1.3 Research question_______________________________________________3

1.4 Scope and limitation of the study___________________________________3

1.5 Research Objectives_____________________________________________3

1.6 Structure of the thesis____________________________________________3

CHAPTER II: LITERATURE REVIEW....................................................................... 5

2.1 General Concept____________________________________________5

2.2 Take-away coffee definition___________________________________5

2.3 Customer satisfaction, service quality and loyalty__________________5

2.4 Previous Study______________________________________________6

2.5 Service quality (SERVQUAL) model__________________________10

CHAPTER III: METHODOLOGY...............................................................................12

3.1 Research Approach_____________________________________________12

A. Research Strategy: Survey__________________________________12

B. Pilot test________________________________________________13

3.2 Quantitative research___________________________________________13

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3.3 Qualitative research____________________________________________14

3.4 Research Framework___________________________________________14

3.5 Conceptual Framework and Hypothesis_____________________________16

3.6 Questionnaire design____________________________________________17

3.7 Sampling_____________________________________________________24

3.8 Data collection________________________________________________25

a) Primary data_____________________________________________25

b) Secondary data___________________________________________25

3.9 Data analysis__________________________________________________25

a. Descriptive Statistic_______________________________________26

b. Reliable Data Analysis_____________________________________26

c. Factor Analysis___________________________________________26

d. Regression Analysis_______________________________________27

CHAPTER IV: DATA ANALYSIS AND DISCUSSION...........................................28

4.1 Sample Demographic___________________________________________28

4.2 Descriptive Statistic____________________________________________31

1. Tangibles________________________________________________31

2. Reliability_______________________________________________33

3. Responsiveness___________________________________________34

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A. Between 5 factors and customer satisfaction______________62

B. Between Customer Satisfaction and Loyalty______________64

C. Hypothesis Testing Result____________________________66

CHAPTER V: CONCLUSION AND RECOMMENDATION...................................67

5.1 Conclusion___________________________________________________67

5.2 Recommendation______________________________________________73

1. Implication for Porevol coffee shop___________________________73

A. Tangible__________________________________________73

B. Reliability_________________________________________74

C. Responsiveness_____________________________________74

D. Assurance_________________________________________74

E. Empathy__________________________________________74

2. Implication for further research______________________________74

APPENDIX........................................................................................................................76

QUESTIONNAIRE...........................................................................................................78

INTERVIEW (VIETNAMESE)........................................................................................87

INTERVIEW (ENGLISH).................................................................................................89

LIST OF REFERENCES...................................................................................................91

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LIST OF FIGURE

1. Figure II-1 Gronrooss Model____________________________________ 8 2. Figure II-2 Service quality: The six criteria of good service quality _____8

3. Figure II-3 Andreas H.Zins Model ________________________________ 9

4. Figure II-4 Frederick Model _____________________________________10

5. Figure II-5 SERVQUAL Model__________________________________ 11

6. Figure III-1 Research Framework________________________________ 14

7. Figure III-2 Conceptual Framework______________________________ 16

8. Figure IV-1 Number of respondents based on gender________________ 29

9. Figure IV-2 Number of respondents based on age___________________ 30

10. Figure IV-3 Number of respondents based on occupation____________ 31

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ABBREVIATION

ASS: Assurance

EMP: Empathy

RES: Responsiveness

REL: Reliability

TAN: Tangible

SERVQUAL: Service Quality Model

SATIS: Satisfaction

LOY: Loyalty

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ABSTRACT

This thesis is conducted with the purpose to measure the factors affectcustomer satisfaction and customer loyalty of take away coffee model business toward

Porevol coffee shop in Ho Chi Minh City. The main problem that should be done in this

study is that customers they are satisfied and become loyalty with service quality of

Porevol coffee shop or not. The findings of this research are extremely important for the

operator and staffs of the Porevol coffee shop. Not only that, it will show the relationship

between the service performance and customer satisfaction.

In this study, we will use both quantitative and qualitative to reach to thefeedback of the customers. It is survey method and interview in typically. The Service

Quality (SERVQUAL) model is the theoretical framework that was used to design the

questionnaire during the study.

After the study was done, the result shows that there is correlation between 5

factors of SERVQUAL model that are being used with customer satisfaction and

correlation between customer satisfaction and customer loyalty. But something still not

touches the customer insights and it reduced the customer satisfaction and customerloyalty. There are 5 factors in SERVQUAL model are tangible, reliability,

responsiveness, assurance and empathy were being used to measure the answers of the

customers. However, only three of them which are Responsiveness, Assurance and

Empathy could be the predictors of Customer Satisfaction.

In general, the customers who come to Porevol, they are likely satisfied with

the product and service of the coffee shop and would become loyalty. In particularly,

Porevol should continue to update and improve to satisfy customer much more.

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Since Porevol coffee shop is a brand new Take Away business model that has juarised in Vietnam market recently years, it is necessary and helpful for it to have a study

on customer satisfaction and customer loyalty, to detect any problems in the performance

of services as well as to find the current situation. That is also the reason why this

research paper is conducted.

1.2 Research problem statement

In competitive business environment, service quality could be seen as an important key

that decide whether gaining or losing your customers. Customers could come to your

business for many reason. It could be your amazing advertising or the attracting of youroutside looking; but without a great quality services, they will be no longer your loyal

customers.

In present condition, the amount of customers that come to Porevol coffee is lower than

the expected number compared in the fisrt five months. The problem that has to be done

here not only stabilize the amount of customers come in and out but also raise that

number. At the end of every week, a Boss of Porevol coffee shop he draw a line to

summerize the total of profit and number of their customers then he relized that it wentup in the first two months but went down in the third year and dramatically going up

again. In the first two months, the overage number of customer is about 1350, it is

reduced into 1165 in the next month but has raised again in the month later giving the

total of customer in the fourth month is nearly 1400. This unstable line show that the

loyalty of Porevols customers is not high. It is easy to understand because Porevol cofshop is a new born brand name in the big family of take-away coffee. But Porevol if they

want to survive, they not only have to gain more new customers but also keep their

loyalty. To do that, Porevol should understand the key insights of their customers. In

general, the purpose of this research through the case of Porevol coffee is studying about

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factors that affect the customers loyalty on coffee products and how to obtain these k points to satisfy the customers.

1.3 Research question

In this paper, the research question will be: What are the most important factors thatdirectly affect to customer satisfaction and indirectly affect the customer loyalty at

Porevol coffee shop?

1.4 Scope and limitation of the study

Because of the limitation of time and capital so that the research can not cover all Take-Away coffee s customers in Vietnam, it is limited within those customers of Porevcoffee in Ho Chi Minh City and the data gathered were analyzed with the qualitative and

quantitative research approaches with a limited sample. This study focuses on the

customers in Ho Chi Minh City only Secondary and Primary Data collected and used is

limited to period between 2011 and 2013.

1.5 Research Objectives

This thesis is conducted in order to measure and determine factors that affect the

customer satisfaction and customer loyalty of Porevol coffee shop. Furthermore, it will

help the company to improve its performance.

1.6 Structure of the thesis

This thesis is divided into 5 main parts. The significant contents of each part will be

illustrated as follow:

Introduction: General background of the research and stating research problem.

Literature review: This chapter presents details of the review of related studies. Allconcepts and definitions of the research objectives are represented with one subtopic in

the study for a clearer explanation of each variable of the research.

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Theoretical framework and Research methodology: Presenting an overview of theapproach used to conduct the research.

Data analysis and Discussions: Analyzing and discussing the results obtained fromcollected data.

Conclusions and Recommendation: Discussing the final results of the study andsuggestion for improvement .

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CHAPTER II

LITERATURE REVIEW

2.1 General Concept:

This chapter will cover somes of the previous data or related materials. A literature

review step helps researchers develop their own work based on previous data that have

done by others before. This tools is used to support the identification of a problem to

research and to illustrate that there is a gap in previous research which needs to be filled.

By definiton, literature review can be defined as the selection of available documents

(both published and unpublished) on the topic, which contain information, ideas, data and

evidence written from a particular standpoint to fulfil certain aims or express certain

views on the nature of the topic and how it is to be investigated, and the effective

evaluation of these documents in relation to the research being proposed. (Hart, 1998: 13)

2.2 Take away coffee definition:

It is defined by dictionary; take away means moving from a place into a new locatior states. With the same meaning, the term take away coffe describes an action that thcustomers come to the coffee shop to buy cup of coffee but they will enjoy it in another

place. Customers when they come to Porevol Coffee Shop, they would be attracted by

cool menu design with variety of products and they could chose whether enjoy to drink

there or take it to another place. This business model allows customers to be more

flexible on time.

2.3 Customer Satisfaction, service quality and loyalty:

To be successful, organizations must try to satisfy their customers. The customersatisfaction is an important key f actor in formation of customers desires for future

purchase (Mittal & Kamakura, 2001). Furthermore, the satisfied customers will probably

talk to others about their good experiences. This fact, where the social life has been

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shaped in a way that social communication with other people enhances the society, is

more important (Jamal & Naser, 2002). The relationship between performance and

customer expectation could be the most two important items that lead to Customer

Satisfaction.

Customer satisfaction surv eys can be a good way to know about your customers insightand characteristics. form a clear concept of your demographic. You can find our your

customers age, gender, occupation and feedbacks from them in order to improve yo products, service performance as well as your marketing strategies for the final result is

customer satisfaction and customer loyalty.

The surveys are valuable sources of information as they show what is important to ourcustomers and suggest where and what we need to improve. We will base on all of the

customers feedback about your service and product to satisfy them.That is the reason why many researchers and academicians have continuously

emphasized on the importance of customer satisfaction. When you achieve this key

concept, you this will lead you to sucess in customer loyalty field. Many service

organizations have developed customer loyalty programs as a part of relations

development activities. Customer loyalty is a further concept. Based on Oxford

Dictionary, loyalty is defined as a state of true to allegiance. But the mere repeated

purchase by customers has been mixed with the above mentioned definition of loyalty. In

service domain, loyalty has been defined in an extensi ve form as observed behaviours(Bloemer, 1999). Caruana (2002) argues that behaviour is a full expression of loyalty to

the brand and not just thoughts.

For all points of view above, Customer Satisfaction and Customer Loyalty have been

considered as the most important keys to help the company to increase the profitability,

market share and return on investment (Nadiri and Hussain, 2005, page 471).

2.4 Previous Studies:

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Some studies have been conducted for measuring the relation between customersatisfaction, customer loyalty and service quality. Following are the previous research

that related to this topic.

Table II-1 Related Studies

Author(s) Topic

K.Ravichandran, B.Tamil Mani, S.Arun

Kumar, S. Prabhakaran (2010)

Influence of service quality on customer

satisfaction- Application of Servqual

Model

Achmad H. Sutawidjaya, Tuti W,Suharyanti (2012)

The influence of Service quality oncustomer satisfaction ( Study in Starbuck

coffee- Indonesia)

Andhika Galih Pinanditha (2012) The study relationship between service

quality & customer loyalty for two

selected restaurant outlet: McDonald &

Starbucks Coffee

Jeff King (2011) Loyal customers, brand advocates, whatsthe difference?

Natalie Abel (2009) Determinants of customer loyalty in the

specialty coffee industry: the differences

between customer loyalty to an

independent coffee shop and Starbucks

Natalie Abels Model

This model defines customer loyalty in the specialty coffee industry and differentiation

between loyalty to an independent coffee shop and loyalty to Starbucks.

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Figure II-1.

Gronrooss Model

Many experts perceive the service in different ways. One of those experts who definesservice quality is Cristian Gronroos (1982), according to the quality of service perceived

by customers will be different.

Gronroos argued that service quality as perceived by customers can be divided into

technical quality and functional quality as the following figure:

Figure II-2- Service quality: The six criteria of good service quality

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Source: Gronroos, C.(1988): Review of Business Vol. 9 No 3, p.12

Based on those literature review and related materials, all the factors can be summarized

in the upon model. These factors from that model were used as criteria to evaluate

decision making of customers on purchasing Porevol coffee shop with loyalty following.

Andreas H.Zins ModelFigure II-3

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Source: Andreas H. Zins, (2001) "Relative attitudes and commitment in customer loyalty

models: Some experiences in the commercial airline industry", International Journal of

Service Industry Management, Vol. 12 Iss: 3, pp.269 294

This model of Andreas could show the relationship between perceived quality,

customer satisfaction and customer loyalty.

Frederick Model

Figure II-4

Service-Profit Model

According to Kane and Freeman in 1997, among those factors that affect service quality

above, employees performance could be the keys for increasing the customer satisfaction.

2.5 Service quality (SERVQUAL) model:

SERVQUAL model (Parasuraman et al,1985) was built up with the

purpose to measure the service quality that could help the organization improving

their performance.

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According to Parasuraman and Zeithaml on 1990, we could compare the

customers expectations and their perceptions of actual performance by using this

model. Servqual scale contents 5 dimensions by the following: Tangibles Reliability Responsiveness Assurance Empathy

Figure II-5 SERVQUAL Model

TANGIBLES

RELIABILITY

RESPONSIVENESS

ASSURANCE

EMPATHY

SERVICE QUALITY

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CHAPTER III

METHODOLOGY

This chapter presents the method adopted in this research in achieving all the research

objectives and answering the research questions. Objectives of Research Methodology

Descriptive research, also known as statistical research; describe data and characteristics

about the population or phenomenon being studied. An exploratory research could beseen as a tool to conduct a problem that has not been clearly defined before. It could help

researcher to determine the research design, target population and data collection.

3.1 Research Approach:

In this research paper, the study will employ quantitative methods since it is the best way

to collect the data for customer satisfaction that tends to investigate business related

notion in a practical concept. In addition, the qualitative method is also been used in this

study. The research will be based on 2 types of date resources: secondary data and

primary data.

A. Research strategy: Survey

A reserch strategy could be defined as a plan of action that gives direction to your effort,

how to answer the research questions and enabling you to conduct research

systematically rather than haphazardly.

The main research strategies are experiment, survey, case study, theories or action

research (Saunder et al 2000, 2007; Malhotra and Birks, 2007)

In this process, we conduct a survey with the pupose to collect data that seek acharacteristic of a target population. For the purposes of this study, we use questionaire to

evalutate the customer satisfaction and customer loyalty of Porevol coffee in Ho Chi

Minh City.

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B. Pilot test

This test is the first step when you begin to gather the data. Pilot testing could be

understood as your trial run with the purpose to detect any weakness or problems in

design.

In this research, pilot test will be conducted with the sample size of 10 people to test the

meaningfullness of the questions. Each person will be told the purposes of this research

for deeply understanding and then the questionaire will be give to each of them to receive

their feedback. After the test, the result showed that there is an evidence that this

questionaire got a good design, easy to understand, the items are relevant to the research.

3.2 Quantitative Research:

According to Cohen (1980), quantitative research is defined as social research that

employs empirical methods and empirical statements. He stated that an empirical

statement is defined as a descriptive statement about what should be in the case and how

it goes in the real world. Furthermore, an empirical statements are expressed in numerical

ways. Another factor that normally being in quantitative research is the empirical

evaluations. It is defined as a form that seeks to determine the degree for a specific

program or policy (in this case is the questionnaire) is empirically fulfills or not fulfill a

particular standard or norm.

In addition, Creswell (1994) has given a very concise definition of quantitative research

as a type of research that is `explaining phenomena by collecting numerical data that are

analyzed using mathematically based methods (in particular statistics).

Quantitative research attempts precise measurement of something. In the evaluation ofcustomer satisfaction, quantitative research is conducted to know how many people in a

population share the same characteristics. We could understand customer insight and

their perception about the service quality.

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3.3 Qualitative Research:

According to Denzin (1994), Qualitative researchers study things in their natural settings,

instead of numerous feedbacks, they focus into the quality of them to see whether or not

it makes sense and the degree of the right answers collected from the customers.

Qualitative research is intended for a deeper significance.

Using qualitative research methods, researchers will collect the information which

providing a detailed description of options and situations that are related to the topic. In

this case, interview is used. For those reasons above, qualitative method is depth and

detail.

3.4 Research Framework:

This research uses a mixture of qualitative and quantitative approach

Figure III-1. Research Framework

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Conclusion andRecommendations

Findings

Factors affect the

customers loyalty

Review the theories aboutand the previous studies.

Introduce the company

Develop Objective

Box of

Methodology

Secondary Data: Company record

Survey method

SPSS software

Quantitative & Qualitative

Collectsecondary

Descriptivestatistic

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3.5 Conceptual Framework and Hypothesis:

Figure III-2

H1: There is a possible impact of Tangibles on customer satisfaction.

H2: There is a possible impact of Reliability on customer satisfaction.

H3: There is a possible impact of Responsiveness on customer satisfaction.

Reliability (H2)

Empathy (H5)

Assurance (H4)

Responsiveness (H3)

CustomerLoyalty

Implied:

Sale IncreaseTangibles (H1)

Satisfaction

(H6)

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H4: There is a possible impact of Assurance on customer satisfaction.

H5: There is a possible impact of Empathy on customer satisfaction.

H6: There is a possible impact of Customer Satisfaction on customer loyalty.

3.6 Questionnaire design:

Questionnaire is designed base on Servqual Model. The purpose of questionnaire survey

is to develop empirical evidence of quality factors of Porevol coffee shop that areimportant and dir ectly affected to customers who are already bought Porevols productThe survey would be comprised of 3 parts. The first part contains questions about

respondents personal information (age, gender,etc.). The second part contains questioabout service quality based on Servqual scale. In addition, one more dimension is added

in this part to measure the overall customer satisfaction. And there would be an open-

ended question in the last part to receive idea of the customers in order to improve service

quality.

Questionnaire would be designed easily for all people to understand and answer the

questions correctly without any difference. All questions were close ended with the use of

a five point Likert scale or balanced rating scale consisted of strongly disagree to strongly

agree. In which, 1 is Strongly Disagree, 2 is Disagree, 3 is Neutral, 4 is Agree, and 5 is

Strongly Agree.

Table III-1 Measurement Scale

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Dimensions Code Question 1 2 3 4 5

Tangibles

Phng tin huhnh.

TAN1 Good location

V tr thu n l i.5points Likert Scale

TAN2 The product tasted is good.

Hng v sn phm ngon5points Likert Scale

TAN3 The menu is diversity and well

organized.

Menu th c ung a dng v bytr ph h p.

5points Likert Scale

TAN4 Free wifi

C tch h p wifi mi n ph5points Likert Scale

TAN5 Free parking

Ch u xe mi n ph5points Likert Scale

TAN6 Barista counter is always clean

and well- organized.

Quy pha ch lun lun s ch s

v b tr p mt.


TAN7 Air- conditioners make

customers feel comfortable.

My lnh c trang b to cmgic tho i mi cho khch hng.


TAN8 Modern machines are equipped

Qun c trang b my mchin i.


TAN9 Employees can speak both 5points Likert Scale

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Vietnamese and English to

communicate with customers.

Nhn vin c th giao ti p bng

song ng c Ting Anh l n

Ting Vi t v i khch hng.TAN10 People can easy recognize the

logo and signboard of Porevol

coffee.

Khch c th d dng nh n ra

l g v b ng hiu ca Porevolcoffee.


Reliability

tin cy

REL1 The employees are being

friendly, polite and truthful.

Nhn vin lun ha nh, l ch s

v ng tin cy.


REL2 Perform services right in a

standard of time.

Thi gian lm 1 ly n c unghon tt trong 1 kho ng th igian cho php.


REL3 Different payment options are

stated clearly.

Phng thc thanh ton khc

c s dng.


REL4 Website is always available.

Trang web lun truy c p c/5points Likert Scale

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REL5 Maintaining efficiently product

and service quality of all time.

Duy tr hi u qu cht l ng sn phm v dich v mi lc.


REL6 Employees have professional

knowledge to respond to the

customers when they need help.

Nhn vin c ki n thc chuyn

mn gip khch hng khi

h c thc mc.


Responsiveness

p ng

RES1 Home delivery products are

timely respond.

Giao hng t n ni ng gi .


RES2 Offer a convenient place for the

customers if asked.

H tr ch dn cho khch hngch ngi tt nu c yu c u.


RES3 Quickly help customers to solve

problems.

Nhanh chng gip khchhng gi i quyt kh khan.


RES4 Timely delivering products

directly to customers.

Khng b t khch hng i lukhi yu c u dng.


RES5 Friendly asking detail of order 5points Likert Scale

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and happy to receive feedback

from the customers.

Hi mt cch than thi n khi

khch hng ch n mn v vui v

nhn phn hi t khch hng.

RES6 Guiding the customers in a

enthusiasm way.

Ch dn khch hng m t cch

nhit tnh.


RES7 Assist the customers in takingorder if they need help.

H tr khch hng g i mn khicn thit.


Assurance

m bo

ASS1 Ensure the products are within

expiry period.

Bo m cht l ng sn phmkhng qu h n s dng.


ASS2 The security policy is accessible.

An ninh t t.


ASS3 Good reputation.

C danh ti ng tt trong kinh

doanh.


ASS4 Personal information of

customers is secured.

Thng tin c nhn c a khch

hng c bo mt.


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ASS5 A customer platform is provided

for exchange of ideas.

C hm th gp nhn phnhi ca khch hng.


ASS6 Employees always show

friendly attitude and

professional serving.

Nhn vin lun c thi phcv thn thi n v c chuyn mn

cao.


Empathy

ng cm

EMP1 Sincerity and patience in

resolving customerscomplaints/problems.

Kin nh n v thnh th t khi gi i

quyt cc ph n nh c a khch

hng.


EMP2 Understand customers needs. Hiu c khch hng.


EMP3 Employees show no

discrimination among

customers.

Nhn vin khng phn bi t

khch hng ( ai n tr c phc

v tr c)


EMP4 Caring the customers in special

day. (Birthday, womens day,5points Likert Scale

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research need to receive is fluctuated from 267 to307 people. In this research, 384

customers of the Porevol Coffee shop would be asked to do the questionnaire randomly

(probability sampling method). The questionnaire is given from 10:00 AM to 20:00 PM

because most of the customers come to Porevol Coffee shop at this time.

3.8 Data collection:

a)

Primary data:Observation: This technique is employed to observe 384 customers of Porevol coffee

shop to know their expectation for improving in product quality, service quality and

employees attitude. Literature Review: some of the related theories and researches would be reviewed to

support for completing the primary framework of the study.

b) Secondary data:

All the information from the literature review that contents related materials getting fromwebsite, magazine and T.V would be considered.

Articles : Collect data based on the related articles about improving product quality,

service quality and employees attitude, which are collected throughout the internet. Thenwe study the data more to deeply understand current working trend.

3.9 Data Analysis:

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After all of the data is collected, we come up with the analysis phase. This process

is aimed to evaluate, summarize and rearrange the data. For quantitative method, the

analysis of the answers of questionnaire will be undertaken using Statistical Package for

Social Science (SPSS) software.

a. Descriptive Statistic:

SPSS descriptive statistics are designed to come up with the information about the

variables distribution. This software allows you to complete a number of statistical

procedures such as: Central tendency measurement, measure of variability around themean and deviation from normality.

b. Reliable Data Analysis:

According to Carmines and Zeller in 1979, The same result that appeared fromexisting research could be a worry thing for researchers because it make the data become

unreliable. It could be understood in a different way that the result is reliable when ttest is done from a different times and population that has not been mention before.

The most useful tool that could be applied in this phase to test the reliability is

Cronbachs Alpha which was developed in 1951. Based on this method, to havreliability, Cronbachs Alpha should approximately tending to 0.8 and larger than 0.6.

c. Factor Analysis:

Cronbach and Meehl (1955) indicated that "No matter the criterion of the subject

is accepted or not, an validation testing must be conducted in order to measure the quality

of the items. It is said again about this thing by Carmines and Zeller (1979). The wordconstruct in this term refers to an action that describe the aspect of human behavior (Van

Dalen, 1979). The validation approach was built with the purpose to measure the scale of

application of the items.

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In addition, Varimax rotation also being used to maximize the variance of the

squared loading of a factors on all the variables by extracted factor.

d. Regression Analysis:

Regression analysis is a mathematical and statistical techniques used to estimate

the relation between one or more dependent variables with one or more independent

variables. This technique could explain the situation that typical value of the dependent

variable changes when some of the independent variables is varied and some others are

fixed.

In this research, linear regression will be used for calculating.

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Chapter IV

DATA ANALYSIS AND DISCUSSION

In this research, I used the SPSS software version 20 to analyze all the collected data.

4.1 SAMPLE DEMOGRAPHIC:

Demographic data are the characteristic of human population. In this research, the

demographic questions are design based on gender, age and occupation of respondents so

that we can found the target customer of Porevol coffee shop. By using this tool, different

opinion would be compared as well.

Among 384 questionnaire distributed, 300 responses were collected and all of

them are valid for this research paper. In this sample population, there was 59%

respondents is female and the remaining part is male.

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Figure IV-1 Number of respondents based on gender

Porevol coffee do business in beverage field, their products are suitable foreveryone at every age. But Porevol coffee they want to know their potential customers,

therefore there is an evidence that age statistic should be considered in the questionnaire.

As a result, the most amount of customers that come to Porevol coffee shop is from 22 to

25 years old.

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Figure IV-2: Number of respondents based on age

Now we come up with the working field to see clearer about the characteristic of

customers that come to Porevol coffee. In contrast, pupils or students share a largest

proportion in buying Porevols products (63%).

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Figure IV-3 Number of respondents based on occupation.

4.2 DESCRIPTIVE STATISTIC:

Descriptive statistic is the phase that are used to describe the main features of

collected data. In this research, the index of Mean and Standard deviation are used

with the purpose to evaluate the distribution of sample population. The lower the

standard deviation is, the closer of data point to the mean.

1. Tangible

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Tangible dimensions are related to any visual contact of customers to the coffee

shop whereas service and product design are the main points.

Table IV-1 Tangible Descriptive Statistic

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

TAN1-Good Location 300 1 4 3.76 .609TAN2-The Productasted is

good300 1 5 3.74 .611

TAN3-The menu is diversity

and well- organized300 1 5 3.73 .632

TAN4-Free Wifi 300 1 5 3.72 .709

TAN5-Free Parking 300 1 5 3.75 .614

TAN6-Barista counter is

always clean and well-

organized

300 1 5 3.82 .665

TAN7-Air-Conditioners makecustomers feel comfortable

300 1 5 3.75 .676

TAN8-Modern machines are

equipped300 1 5 3.74 .709

TAN9-Employees can speak

both Vietnamese and English

to communicate with

customers

300 1 5 3.71 .665

TAN10-People can easy

recognize the logo and

signboard of Porevol coffee

300 1 5 3.61 .748

Valid N (listwise) 300

Average 3.733

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As you can see from the table above that all ten elements of tangible dimension

get the acceptable average of mean is 3.733 compared to maximum is 5 and those

means dont fluctuate much. The mean range from 3.61 to 3.82 could bacceptable to show that Porevol coffee shop gain partly positive impression of

customers.

The element TAN6 is the one that has largest mean with 3.82. This could show

that customers who come to Porevol coffee, most of them are attracted of the

Barista Counter because it is clean and well-organized.

The element TAN10 has the smallest index of mean with 3.61. This could give anevident that customers they are not easy to realize the logo and signboard of

Porevol coffee.

2. Reliability

Reliability dimensions could be used as a tool to measure the performance of

Porevol coffee shop. In other words, reliability dimensions could show whether

the performance of Porevol coffee is truthful or not.

Table IV-2 Reliability Descriptive Statistics



REL1- The employees are

being friendly, polite and

truthful

300 1 5 3.65 .811

REL2-Perform services right ina standard of time

300 1 5 3.74 .800

REL3-Different payment

options are stated clearly300 1 5 3.61 .707

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N Minimum Maximum Mean Std. DeviationRES1-Home delivery products

are timely respond300 1 5 3.75 .635

RES2-Offer a convenient place

for the customers if asked300 2 5 4.01 .657

RES3-Quickly help customers

to solve problems300 1 5 3.84 .674

RES4-Timely delivering

products directly to customers300 1 5 3.92 .776

RES5-Friendly asking detail of

order and happy to receive

feedback from the customers

300 1 5 3.64 .739

RES6-Guiding the customers

in a enthusiasm way300 1 5 3.87 .649

RES7-Assist the customers in

taking order if they need help300 1 5 4.01 .808


Average 3.86

With the higher average of mean 3.86 compared to two mentioned dimensions

above, responsiveness give a better number. It shows that customers they feel

likely more satisfy in this field.

The two items RES2 and RES7 give the same mean highest point at 4.01. It

means that respondents feedback give agree to strongly agree about Offer convenient place for customers if asked and Assist the customers in takinorder if they need help respectively for RES2 and RES7.

The lowest score is for RES5 Friendly asking detail of order and happy toreceive feedback from the customers. This could show that customers they dnot really satisfy when they have some complains or making suggestions because

of unhappy attitude of the staffs.

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4. Assurance

Assurance dimensions give an explanation about how customers feel toward their

personal information, security. That level is showed by the following table:

Table IV-4 Assurance Descriptive Statistics



ASS1-Ensure the products are

within expiry period300 3 5 4.07 .345

ASS2-The security policy is

accessible300 3 5 4.01 .356

ASS3-Good Reputation 300 3 5 3.81 .496

ASS4-Personal information of

customers are secured300 3 5 3.86 .409

ASS5-A customer platform is

provided for exchange ideas300 2 33 2.64 1.839

ASS6-Employees always show


professional serving

300 3 5 3.92 .371


Average 3.72

Compared to the average mean is 3.72, two items ASS1 and ASS2 have the

highest point with 4.07 and 4.01 respectively. It shows that customers they really

feel safe and satisfy about quality of products and security policy of Porevol

coffee shop.

Item ASS5 has the lowest score with 2.64, it shows that mostly feedback of

customers about this item are strongly disagreed and disagreed.

5. Empathy

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Customers perception about how Porevol coffee shop give their attention tcustomers and take care of them could be described by the following table:

Table IV-5 Empathy Descriptive Statistics



EMP1-Sincerity and patience

in resolving customer's

complains or problems

300 1 5 3.82 .682

EMP2-Understand the

customer's need 300 2 5 3.99 .448

EMP3-Employees show no

discrimination among

customers

300 1 5 3.91 .697

EMP4-Caring the customers in

special day. (Birthday,

women's day, lunar new year,

etc.)

300 1 5 4.04 .531

EMP5-Giving promotion and

grateful to customers especially

customers who have member

or V.I.P card

300 1 4 3.82 .431


Average 3.916

With the high rate of average level is 3.916 compared to maximum is 5, this

numbers show that in general, most of customers they really feel satisfy and

happy with this dimension.

The highest score is for item EMP4 with 4.04. It could tell us that Porevol coffee

they really take care of their customers by making events in special days.

6. Customer Satisfaction

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This dimensions give an overall view about how customer feel satisfy with

Porevol coffee shop.

Table IV-6 Satisfaction Descriptive Statistics



SATIS1-In general, I feel

satisfy with product quality of

Porevol cofee

300 1 5 4.02 .696

SATIS2-I feel satisfy with the

attitude of the staffs of Porevolcoffee

300 1 5 4.07 .673


service quality of Porevol

coffee

300 1 5 4.05 .702

SATIS4-I fell satisfy with the

equippments of Porevol coffee300 1 5 3.86 .691


Average 4

A happy new for Porevol coffee that they have special perception of customers.With the average number of mean is 4, Porevol coffee should feel happy because

they likely touch customer insights.

7. Customer loyalty

This dimension could answer the question is that Do customers would beloyalty?

Table IV-7 Customer Loyalty Descriptive Statistics

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N Minimum Maximum Mean Std. DeviationLOY1-I will continue going to

this coffee shop in near future300 3 5 4.12 .496

LOY2-I will introduce this

coffee shop to my family and

friends

300 3 5 4.12 .421

LOY3-I consider Porevol

coffee is my first choice when I

want to go to coffee shop

300 1 5 3.97 .614


Average 4.01

It is easy to understand that customer likely express their loyalty for Porevol

coffee because the satisfaction level seems to be high. The average number of

mean in this tab is 4.07 with the same level of item LOY1 and LOY2 is 4.01,

giving the promises of customers to continue to go to Porevol coffee and also

introduce to their family and friends.

4.3 RELIABILITY TEST:

In this part, we will use Cronbachs alpha in order to measure the consistency of tdata. Cronbachs alpha lies in the interval between 0.6 and 0.7 is acceptable reliabiliand higher 0.8 indicates good reliability.

1. Tangibles

Table IV- 8 Cronbachs Alp ha of Tangible

Reliability Statistics

Cronbach's Alpha N of Items

.897 10

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Table IV-9 Item- Total Statistics of Tangibles

Item-Total Statistics

Scale Mean if

Item Deleted

Scale Variance if

Item Deleted

Corrected Item-

Total Correlation

Cronbach's Alpha

if Item Deleted

TAN1-Good Location 33.56 18.475 .783 .878

TAN2-The Productasted is

good33.58 18.419 .790 .877


and well- organized33.59 18.918 .658 .885

TAN4-Free Wifi 33.60 19.298 .503 .896

TAN5-Free Parking 33.57 18.754 .716 .882



organized

33.50 18.819 .637 .887

TAN7-Air-Conditioners make

customers feel comfortable33.57 19.269 .541 .893


equipped33.58 18.425 .659 .885



to communicate with

customers

33.61 19.055 .593 .890

TAN10-People can easyrecognize the logo and


33.70 18.510 .602 .890

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It can be seen from the table IV-8 above that the Tangibles dimension gets an

Cronbachs Alpha is 0.897 which is higher than 0.8. Thus, we can conclude th

all of ten items are well designed and related to the research. Furthermore, the

Cronbachs alpha if items deleted in table IV-9 could tell us that deleting any itemin tangibles dimension could decrease the reliability because those items are well-

related.

2. Reliability

Table IV- 10 Cronbachs Alpha of Reliability



.889 6

The Cronbachs Alpha of reliability dimension is 0.889 which is higher than 0could be seen as an good number. It tells us that the data collected is reliable.

Table IV-11 Item-Total Statistics of Reliability


Scale Mean if

Item Deleted

Scale Variance if

Item Deleted

Corrected Item-

Total Correlation

Cronbach's Alpha

if Item Deleted



truthful

18.41 10.503 .654 .878

REL2-Perform services right in

a standard of time 18.31 10.348 .702 .870


options are stated clearly18.44 10.422 .806 .856

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REL4-Maintaining efficiently

product and service quality of

all time

18.34 10.325 .678 .874

REL5-Website is always

available18.42 10.258 .769 .859

REL6-Employees have

professional knowledge to

respond to the customers when

they need help

18.34 10.327 .646 .880

As the same as Tangible dimension, the Cronbachs Alpha if items deleted frothe table IV-11 could be declined if any item of reliability dimension is deleted.

So we keep all items of this dimension.

3. Responsiveness

Table IV- 12 Cronbachs Alpha of Responsiveness



.844 7

Table IV-13 Item-Total Statistics of Responsiveness


Scale Mean if

Item Deleted

Scale Variance if

Item Deleted

Corrected Item-

Total Correlation

Cronbach's Alpha

if Item Deleted

RES1-Home delivery products

are timely respond23.29 10.261 .500 .837

RES2-Offer a convinient place

for the customers if asked23.03 9.661 .639 .818


to solve problems23.20 9.603 .633 .818

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products directly to customers23.12 9.183 .620 .820




23.40 9.465 .592 .824


in a enthusiasm way23.17 9.821 .605 .823


taking order if they need help23.03 9.019 .625 .820

The Cronbachs Alpha of Responsiveness is equal0.844 which is higher than 0.8.Because of an decrease of initial Cronbachs Alpha if any item belong tresponsiveness dimension is deleted, thus seven items would be kept.

4. Assurance

Table IV- 14 Cronbachs Alpha of Assurance



.347 6

Table IV-15 Item-Total Statistic of Assurance


Scale Mean if

Item Deleted

Scale Variance if

Item Deleted

Corrected Item-

Total Correlation

Cronbach's Alpha

if Item DeletedASS1-Ensure the products are

within expiry period18.25 5.126 .406 .260


accessible18.31 4.991 .478 .235

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ASS3-Good Reputation 18.51 4.813 .377 .229


customers are secured18.46 5.005 .385 .248

ASS5-A customer platform is

provided for exchange ideas19.68 2.626 -.022 .871




18.40 5.130 .363 .266

It can be seen from the table above that assurance dimension has an unacceptable

cronbachs alphawhich is lower than 0.6. But if the item ASS5 is deleted, it could

make a huge increase in cronbachs alpha up to 0.871. So the ASS5 would bdeleted. And here is the new Cronbachs Alpha for Assurance dimension.

Table IV- 16 New Cronbachs Alpha of Assurance



.871 5

Now the Cronbachs Alpha is higher than 0.8.

5. Empathy

Table IV- 17 Cronbachs Alpha of Empathy


Cronbach's Alpha N of Items.768 5

Table IV-18 Item-Total Statistics of Empathy

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Scale Mean if

Item Deleted

Scale Variance if

Item Deleted

Corrected Item-

Total Correlation

Cronbach's Alpha

if Item Deleted




15.76 2.618 .509 .745

EMP2-Understand the

customer's need15.59 2.945 .689 .691


discriminaiton among

customers

15.67 2.670 .460 .767


special day.( Birthday,


etc.)

15.53 2.845 .601 .707




or V.I.P card

15.75 3.156 .563 .728

Based on number from those table above, we can see that the CronbachAlpha of Empathy dimension is acceptable (higher than 0.6). And a decrease

in cronbachs alpha could occur if any items is deleted. 6. Satisfaction

Table IV- 19 Cronbachs Alpha of Satisfaction

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.640 4

Table IV-20 Item-Total Statistic of Satisfaction


Scale Mean if

Item Deleted

Scale Variance if

Item Deleted

Corrected Item-

Total Correlation

Cronbach's Alpha

if Item Deleted


satisfy with product quality ofPorevol cofee

11.98 2.314 .411 .577


attitude of the staffs of Porevol

coffee

11.93 2.283 .458 .545



coffee

11.95 2.208 .465 .539

SATIS4-I fell satisfy with the

equippments of Porevol coffee12.15 2.440 .348 .621

The satisfaction dimension has Cronbachs Alpha is 0.640 which is higher 0.6 thcould give an acceptable reliability according to Rules of thumb. Deleting any

item of satisfaction could make a decrease in number so all of four item will be

kept.

7. Loyalty

Table IV- 21 Cronbachs Alpha of Loyalty


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.644 3

Talble IV-22 Item-Total Statistics of Loyalty


Scale Mean if

Item Deleted

Scale Variance if

Item Deleted

Corrected Item-

Total Correlation

Cronbach's Alpha

if Item Deleted

LOY1-I will continue going to

this coffee shop in near future8.09 .728 .504 .479

LOY2-I will introduce thiscoffee shop to my family and

friends

8.09 .878 .440 .580

LOY3-I consider Porevol

coffee is my first choice when I

want to go to coffee shop

8.24 .596 .452 .579

As the same as satisfaction dimension, the cronbachs alpha of loyalty dimension justop in acceptable interval which is equal 0.644 in number, higher than 0.6. all of

three items will be kept for not creating decline in cronbachs alpha index.

4.4 FACTOR ANALYSIS:

As we mentioned in literature review, Exploratory Factor Analysis (EFA) is a factor

analysis technique that is used to test the validity of the data.

1. Exploratory Factor Analysis (EFA):

They Exploratory Factor Analysis (EFA) will be used in this part to test the modelwith Kaiser-Meyer- Olkin (KMO) and Bartletts test of Sphericity combined withvarimax rotation. The KMO index will measure the adequacy of the sample with the

r esult must be from 0.6 to 1 and the Bartletts test of Sphericity must give a

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significant is lower than 0.05. In addition, the Eigen-value of each factor mush be

greater than 1 and total variance explained need to be over 50%. Item that less than

0.5 and distributes in two or more components with the difference less than 0.3 would

be eliminated according to Kaiser in 1970.

In this test, item ASS5 was deleted in order to keep reliability of assurance

dimension. After running the test, the result give an KMO is 0.913 and Bartlett

number has a significant is 0. Thus, the EFA technique is suitable for data collected

from the survey.

Table IV- 23 KMO and Bartletts test for Independent Variables

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .913

Bartlett's Test of Sphericity

Approx. Chi-Square 5948.793

df 528

Sig. .000

Table IV-24 Rotated Component Matrix of Independent variables (1 st test)

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Component

1 2 3 4 5 6

TAN1-Good Location .830TAN2-The Productasted is

good.812

TAN5-Free Parking .743


equipped.723


and well- organized.716



organized

.673



to communicate with

customers

.636




.635


customers feel comfortable.604

TAN4-Free Wifi .501


options are stated clearly.825


a standard of time.767



truthful

.753


available.745



all time

.672

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REL6-Employees have

professional knowledge to


they need help

.595




.743


for the customers if asked.697


in a enthusiasm way.655


to solve problems.628


are timely respond.614


products directly to customers.556


taking order if they need help.534

EMP2-Understand the

customer's need.730


in resolving customer'scomplains or problems

.726




or V.I.P card

.652




etc.)

.613

ASS2-The security policy isaccessible

.868


within expiry period.790

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customers are secured.683




.634

ASS3-Good Reputation .595


discriminaiton among

customers

.513 .575

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 6 iterations.

As you can see from the table IV-24 above, the item EMP3 distributes in two difference

components and has the difference is 0.062 which is lower than 0.3. So the item EMP3

will be eliminated.

Table IV-25 Rotated Component Matrix of Independent Variables (2 nd test)

Rotated Component Matrix a

Component

1 2 3 4 5

TAN1-Good Location .831

TAN2-The Productasted is

good.813

TAN5-Free Parking .739


equipped.723


and well- organized

.717



organized

.663

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to communicate with

customers

.645




.644


customers feel comfortable.600

TAN4-Free Wifi .495


options are stated clearly.822


available.753


a standard of time.752



truthful

.736



all time

.687

REL6-Employees have professional knowledge to


they need help

.605


for the customers if asked.744




.702


to solve problems.632


in a enthusiasm way.606


are timely respond.606

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products directly to customers.591


taking order if they need help .552


accessible.866


within expiry period.794


customers are secured.685




.636

ASS3-Good Reputation .593




.763

EMP2-Understand the

customer's need.717




or V.I.P card

.622




etc.)

.620

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 6 iterations.

After progress EFA test, 5 new components are created. The first component contents

10 elements of tangible dimension and it still call Tangible. The second component

includes all six item of Reliability dimension and it still call Reliability. The third

component consist of all 7 items of Responsiveness dimension and it still got the

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name Responsiveness. The fourth component has only 5 items belongs to Assurance

dimension after item ASS5 was eliminated to raise the cronbachs alpha. And the la

component has only 4 remaining items belongs to Empathy dimension after item

EMP3 is deleted because of cross loading data in rotated component matrix test.

In addition, KMO and Bartletts test also used to test the Customer Satisfaction anCustomer Loyalty dimension.

Table IV- 26 KMO and Bartletts test for Customer Satisfaction

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .714

Bartlett's Test of Sphericity

Approx. Chi-Square 140.200

df 6

Sig. .000

Table IV-27 Component Matrix for Customer Satisfaction dimension

Component Matrix a

Component

1



coffee

.740


attitude of the staffs of Porevol

coffee

.734


satisfy with product quality of

Porevol cofee

.686

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LOY2-I will introduce this

coffee shop to my family and

friends

.752

Extraction Method: Principal Component

Analysis.

a. 1 components extracted.

Table IV-28 and IV-29 show us that Customer loyalty dimension has acceptable

KMO which is 0.651 > 0.6 and Bartletts significantis 0 < 0.05. So EFA test could beused for loyalty dimension. The result give 1 components extracted for this

dimension. It shows us that there are interrelationships between those items.

2. Cronbachs alpha after EFA test:

All of Cronbachs alphas of Tangible, Reliability, Responsiveness, Assurance areunchanged because there was no removed or added items after EFA test. Only one

dimension has the new Cronbachs Alpha is Empathy dimension after item EMP3eliminated.

Table IV- 30 New Cronbachs Alpha for E mpathy dimension after EFA test



.767 4

Table IV-31 New Item-Total Statistics of Empathy after EFA test


Scale Mean if

Item Deleted

Scale Variance if

Item Deleted

Corrected Item-

Total Correlation

Cronbach's Alpha

if Item Deleted

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11.85 1.310 .574 .734

EMP2-Understand the

customer's need11.68 1.695 .664 .674




etc.)

11.63 1.579 .605 .692




or V.I.P card

11.85 1.889 .501 .748

After EFA test, the Cronbach alpha of Empathy reduce from 0.768 to 0.767 and still

acceptable for reliability test. All of four remaining items of empathy dimension are

well- related, so deleting any item could make a decrease in Cronbachs alpha numbe

4.5 CORRELATION TESTING:

In this part we will use Pearson Correlation testing which was developed by Karl

Pearson to evaluate the linear relationship between two variable. The purpose of this

test is to check the correlation between 5 elements belongs to Servqual model

(Tangible, Reliability, Responsiveness, Assurance, Empathy) and Satisfaction

dimension. Moreover, we also conduct a similar test for Customer Satisfaction and

Customer Loyalty to know whether they have correlation or not.

The result of this test show the relationship between each factors, the r value number

could show us that there is an correlation between those factors or not and it strong or

weak. The larger the r value is, the stronger of the correlation.

In this test, 2-tailed test is chosen to determine whether those variables are negative or

positive related.

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Hypothesis for this part:

H0: r=0 There is no correlation between two variables.

Hi: r# 0 There is correlation between two variables

The symbol ** show us that we can reject the null hypothesis(Ho) with significaat 0.01 level using two-tailed test.

Table V-1 Correlation between 5 factors and Customer Satisfaction

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Correlations

REGR factor

score 1 for

analysis

TANGIBLE

REGR

factor score

1 for

analysis

RELIABIL

TY

REGR factor

score 1 for

analysis

RESPONSIV

ENESS

REGR factor score

1 for analysis

ASSURANCE

REGR factor

score 1 for

analysis

EMPATHY

REG

scor

an

SATI

I

REGR factor score 1 for analysis

TANGIBLE

Pearson

Correlation1 .531 ** .462 ** .333 ** .364 **

Sig. (2-tailed)

.000 .000 .000 .000

N 300 300 300 300 300


RELIABILTY

Pearson

Correlation.531 ** 1 .519 ** .483 ** .456 **

Sig. (2-

tailed).000 .000 .000 .000

N 300 300 300 300 300

REGR factor score 1 for analysisRESPONSIVENESS

Pearson

Correlation.462 ** .519 ** 1 .453 ** .601 **

Sig. (2-

tailed).000 .000 .000 .000

N 300 300 300 300 300


ASSURANCE

Pearson

Correlation.333 ** .483 ** .453 ** 1 .430 **

Sig. (2-

tailed).000 .000 .000 .000

N 300 300 300 300 300

REGR factor score 1 for analysisEMPATHY

Pearson

Correlation.364 ** .456 ** .601 ** .430 ** 1

Sig. (2-

tailed).000 .000 .000 .000

N 300 300 300 300 300


SATISFACTION

Pearson

Correlation.335 ** .399 ** .603 ** .433 ** .587 **

Sig. (2-

tailed).000 .000 .000 .000 .000

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1. Multicollinearity tesing:

Collinearity or mulicollinearity is an undesirable situation occurred when the

correlation between independent variables are strong. This situation could reduce the

reliability and validity of the research. Hence, before we analyze the regression, we

have to test the collinearity first.

Table VI-1 Collinearity between 5 factors

Coefficients a

Model Collinearity Statistics

Tolerance VIF

1

REGR factor score 1 for

analysis TANGIBLE.668 1.496


analysis RELIABILTY.561 1.784


analysis RESPONSIVENESS.526 1.903


analysis ASSURANCE

.691 1.447


analysis EMPATHY.593 1.687

a. Dependent Variable: REGR factor score 1 for analysis

SATISFACTION

The Variance Inflation Factor (VIF) could show us that we have a multicollinear

problem or not. If the VIF index is from 3 to 5, you are probability get collinearity

problem. If your VIF number is greater than 5, you are likely face that problem. And if

your VIF is greater than 10, you are definitely have collinearity problem. The table VI-1

shows us that the VIF of our 5 independent factors (Tangibles, Reliability,

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Responsiveness, Assurance and Empathy) have weak relationship with each other. In

other words, there is no collinearity threat in this situation.

2. Regression Analysis:

Multiple linear regression method is used in this part. The purposes of this test are to test

the relationship between 5 independent factors of Servqual model as we mentioned with

dependent variable is Customer Satisfaction dimension and relationship between

independent variable is Customer Satisfaction with dependent variable is Customer

Loyalty. We will do two times test in this part.

a) Regression analysis between 5 factors and customer satisfaction:

Table VI-2 Regression Result- Model Summary (5 factors)

Model Summary

Model R R Square Adjusted R

Square

Std. Error of the

Estimate

1 .676 a .457 .448 .74292996

a. Predictors: (Constant), REGR factor score 1 for analysis EMPATHY,

REGR factor score 1 for analysis TANGIBLE, REGR factor score 1 for

analysis ASSURANCE, REGR factor score 1 for analysis RELIABILTY,

REGR factor score 1 for analysis RESPONSIVENESS

From table VI-2, we can see that the R square number is equal 0.457. It is not a good new

for the company because it explains only 45.7% of changes in dependent variable can be

explained by the variables in the regression equation (independent variables). And the

remaining percentage of changes (the larger) in dependent variable is explained by other

factors not in the regression.

In addition, we can use ANOVA (analysis of variance) table to check the statistical

meaning of the data.

Table VI-3 ANOVA result for 5 factors

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ANOVA a

Model Sum of Squares df Mean Square F Sig.

1

Regression 136.728 5 27.346 49.544 .000

Residual 162.272 294 .552

Total 299.000 299

a. Dependent Variable: REGR factor score 1 for analysis SATISFACTION

b. Predictors: (Constant), REGR factor score 1 for analysis EMPATHY, REGR factor score 1 for

analysis TANGIBLE, REGR factor score 1 for analysis ASSURANCE, REGR factor score 1 for analysis

RELIABILTY, REGR factor score 1 for analysis RESPONSIVENESS

Look at the table VI-3 above, we can realize that the significant of the F statistic is very

small (lower than 0.05). It means that 5 independent variables (Tangibles, reliability,

responsiveness, assurance, empathy) could be acceptable in explaining the variation in

the dependent variable (Customer Satisfaction).

Now we are going to do T test to check the reliability of each independent variable could

be used to predict the dependent variable not only in the sample size but also for the

whole population.

Table VI-4 Coefficient of 5 factors

Coefficients a

Model Unstandardized Coefficients Standardized

Coefficients

t Sig.

B Std. Error Beta

1

(Constant) 2.743E-016 .043 .000 1.000


analysis TANGIBLE

.014 .053 .014 .267 .790


analysis RELIABILTY.004 .057 .004 .069 .945

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analysis RESPONSIVENESS.343 .059 .343 5.787 .000

REGR factor score 1 foranalysis ASSURANCE

.136 .052 .136 2.622 .009


analysis EMPATHY.316 .056 .316 5.663 .000


Look at the T test result from table VI-4, we can see that the p-value of tangibles,

reliability are greater than 0.05. It means that the relationship between customer

satisfaction and tangibles, reliability are not reliable and it could be used only in this

sample size, not for the whole population. In contrast, the three remaining variables

(Responsiveness, Assurance and Empathy) have statistical significance because the p-

value is lower than 0.05. In other words, Responsiveness, Assurance and Empathy could

be the predictors for Customer Satisfaction factor in the whole population. In this case,

we reject the null hypothesis of those three variables on Customer Satisfaction and accept

null hypothesis for tangibles and reliability dimensions.

Now we continue and focus on three acceptable dimension with the Standardize

coefficients beta. You can see that Responsiveness dimension got the largest betanumber. It means that responsiveness have most impact on customer satisfaction. And

after that are Empathy and Assurance respectively with beta equal 0.316 and 0.136. Now

the regression linear could be showed by the following:

SF1= 0.14TAN+ 0.04 REL+ 0.343 RES+ 0.316 EMP+ 0.136ASS + (2.743E-016)

b) Regression analysis between customer satisfaction and customer loyalty:

Now we want to do the similar thing as part 2a for customer satisfaction and customer

loyalty.

Table VI-5 Regression Result- Model Summary (satisfaction and loyalty)

Model Summary

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Model R R Square Adjusted R

Square

Std. Error of the

Estimate

1 .641a

.411 .409 .76859440a. Predictors: (Constant), REGR factor score 1 for analysis SATISFACTION

The table VI-5 above gives the result that 41.1% of changes in dependent variable

(customer loyalty) can be explained by the variables in the regression equation (customer

satisfaction). And the remaining percentage of changes can be explained by other factors

that is not included in this research.

Now we want to check how this work on the whole population by using F test.

Table VI-6 ANOVA result for Satisfaction and Loyalty

ANOVA a

Model Sum of Squares df Mean Square F Sig.

1

Regression 122.960 1 122.960 208.147 .000

Residual 176.040 298 .591

Total 299.000 299

a. Dependent Variable: REGR factor score 1 for analysis LOYALTY

b. Predictors: (Constant), REGR factor score 1 for analysis SATISFACTION

After doing F test, the result gives the significant is lower than 0.05. Thus, customer

satisfaction doing a good job in explaining the variation of customer loyalty.

Table VI-7 Coefficient (customer satisfaction and customer loyalty)

Coefficients a


Coefficients

t Sig.

B Std. Error Beta

1 (Constant) 1.550E-015 .044 .000 1.000

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analysis SATISFACTION.641 .044 .641 14.427 .000

a. Dependent Variable: REGR factor score 1 for analysis LOYALTY

Table VI-7 give the p-value of customer satisfaction is 0, lower than 0.05, so this result

could be applied not only on this sample size but the whole population. In other words,

we would like to reject null hypothesis of customer satisfaction on customer loyalty

because it actually has an impact. The regression linear is showed by the following:

SF2= 0.641 SATIS + (1.550E-015)

c) Hypothesis testing result:

Hypothesis Discription Result

H1 There is a possible impact of

Tangibles on customer satisfaction.

Do not support


Reliability on customer satisfaction.

Do not support


Responsiveness on customersatisfaction.

Support


Assurance on customer satisfaction.

Support


Empathy on customer satisfaction.

Support


Customer Satisfaction on customer

loyalty.

Support

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Chapter V

CONCLUSION AND RECOMMENDATION

The last chapter will emphasize the final result, implication of the thesis and suggestion

for Porevol coffee shop.

5.1 CONCLUSION

This research is conducted to measure factors that affect customer satisfaction of Porevol

coffee shop in Ho Chi Minh City in field of service quality. It is important significance

for the Porevol coffee shop to deeply understand the customer insights and achievecustomer loyalty.

In order to measure the research better, Ive chosen the Servqual model as a theoretiguide for setting the scale and designing the questionnaire. The questionnaire is designed

base on 5 dimensions of SERVQUAl model named Tangibles, Reliability,

Responsiveness, Assurance and Empathy then distributed to the customer. This research

was conducted from January 2013 to May 2013.

In this research, the survey is done by collecting the responses from the customers who

tasted the Porevol coffee shop products with the sample size is 300 persons. The

Software named SPSS version 20 is applied to progress the data the collected from the

survey. There are 4 main steps were done in data analysis procedure to find out the final

result of this research, the first step is discuss about descriptive statistic. The second step

related testing the reliability of the data, the next step is Exploratory Factor Analysis

(EFA) test to check the validity of the data. And the last one is Regression analysis.

After processed the data, all of five factors belongs to Servqual model have positive

impact on the customer satisfaction especially Responsiveness dimension has thestrongest relationship. However, after running T test, there were three of them

(responsiveness, assurance and empathy) could be the predictors for the customer

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satisfaction. Two remaining factors ( Tangibles and Reliability) could not be because the

relationship between them and customer satisfaction is not reliable.

Table V-1 Review the coefficient of 5 FactorsCoefficients a


Coefficients

t Sig.

B Std. Error Beta

1

(Constant) 2.743E-016 .043 .000 1.000


analysis TANGIBLE.014 .053 .014 .267 .790


analysis RELIABILTY.004 .057 .004 .069 .945


analysis RESPONSIVENESS.343 .059 .343 5.787 .000


analysis ASSURANCE.136 .052 .136 2.622 .009


analysis EMPATHY.316 .056 .316 5.663 .000


The result give the average means of the customer satisfaction and customer loyalty are 4

and 4.01 respectively compared to 5. It could tell us that the customers who come to

porevol are satisfy with the service and willing to continue to go to Porevol coffee shop.

But the number also tell us that not all of them agreed with that. So the Porevol should

improve somethings more to attract more customers because during the selling-

purchasing process, some of intended mistake could occur and reduce the customer

satisfaction and customer loyalty as well.

In addition, based on table V-1 about the correlation between 5 factors and customer

satisfaction and table V-2 about the correlation between customer satisfaction and

customer loyalty, we found out that there was correlationship between 5 factors of

Servqual model with customer satisfaction and correlationship between customer

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communicate with customers.

Nhn vin c th giao ti p bng song ng c Ting Anh

ln Ting Vi t v i khch hng.TAN10 People can easy recognize the logo and signboard of

Porevol coffee.

Khch c th d dng nh n ra l g v b ng hiu ca

Porevol coffee.

Reliability

tin cy

REL1 The employees are being friendly, polite and truthful.

Nhn vin lun ha nh, l ch s v ng tin cy.REL2 Perform services right in a standard of time.

Thi gian lm 1 ly n c ung hon t t trong 1khong th i gian cho php.

REL3 Different payment options are stated clearly.

Phng thc thanh ton khc c s dng.REL4 Website is always available.

Trang web lun truy c p c/REL5 Maintaining efficiently product and service quality of

all time.

Duy tr hi u qu cht l ng sn phm v dich v milc.

REL6 Employees have professional knowledge to respond to

the customers when they need help.

Nhn vin c ki n thc chuyn mn gi p khchhng khi h c th c mc.

Responsiveness RES1 Home delivery products are timely respond.

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p ng

Giao hng t n ni ng gi .RES2 Offer a convenient place for the customers if asked.

H tr ch dn cho khch hng ch ngi tt nu cyu cu.

RES3 Quickly help customers to solve problems.

Nhanh chng gip khch hng gi i quyt kh khan.RES4 Timely delivering products directly to customers.

Khng b t khch hng i lu khi yu c u dng.RES5 Friendly asking detail of order and happy to receive

feedback from the customers.Hi mt cch than thi n khi khch hng ch n mn v

vui v nhn phn hi t khch hng.

RES6 Guiding the customers in a enthusiasm way.

Ch dn khch hng m t cch nhi t tnh.

RES7 Assist the customers in taking order if they need help.

H tr khch hng g i mn khi c n thit.

Assurance

m bo

ASS1 Ensure the products are within expiry period.

Bo m cht l ng sn phm khng qu h

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