Lecturer: Dr. TRAN UT ASSIGNMENT – BMBR5103
Student: LE ANH TUAN MBAOUM0512 Class 1C ID: 2448512
Student: HA TRIEN BANG MBAOUM0512 Class 1C ID: 2448444
Page1
CONTENT
ACKNOWLEDGMENTS 3
CHAPTER 1: INTRODUCTION 3
1. Reason for choosing topic 3
2. Research objectives. 4
2.1. The overall goals. 4
2.2. Specific objectives 4
3. Research questions 4
4. The research hypothesis 5
5. The practical significance of the subject. 6
6. Structure of topic 6
CHAPTER 2: LITERATURE REVIEW 7
1. Definition Business Research 7
2. Theoretical Literature. 7
2.1. Kano theory of customer satisfaction 8
2.2. Queuing theory of customer satisfaction 12
3. 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
4. Research Model 19
5. Conclusion 21
Lecturer: Dr. TRAN UT ASSIGNMENT – BMBR5103
Student: LE ANH TUAN MBAOUM0512 Class 1C ID: 2448512
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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.
Lecturer: Dr. TRAN UT ASSIGNMENT – BMBR5103
Student: LE ANH TUAN MBAOUM0512 Class 1C ID: 2448512
Student: HA TRIEN BANG MBAOUM0512 Class 1C ID: 2448444
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2. 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…
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.
Lecturer: Dr. TRAN UT ASSIGNMENT – BMBR5103
Student: LE ANH TUAN MBAOUM0512 Class 1C ID: 2448512
Student: HA TRIEN BANG MBAOUM0512 Class 1C ID: 2448444
Page6
5. 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.
6. 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
Lecturer: Dr. TRAN UT ASSIGNMENT – BMBR5103
Student: LE ANH TUAN MBAOUM0512 Class 1C ID: 2448512
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CHAPTER 2: LITERATURE REVIEW
1. 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]
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.
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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.
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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
result in high levels of customer satisfaction, however their absence does not lead to dissatisfaction.
Excitement attributes often satisfy latent needs – real needs of which customers are currently
unaware. Using the hotel example again, “unspoken and unexpected” are that we stay a hotel who
delighted by a freshly baked, chocolate chip cookie delivered to their room during turn-down
service, all aren’t expected and required by customer. In a competitive marketplace where
manufacturers’ products provide similar performance, providing excitement attributes that address
“unknown needs” can provide a competitive advantage. Although they have followed the typical
evolution to a performance then a threshold attribute, cup holders were initially excitement
attributes.
Finally, we can see that out of all the attributes introduced in the Kano Model, the excitement ones
are the most powerful and have the potential to lead to the highest gross profit margins. Innovation
is undisputedly the catalyst in delivering these attributes to customers; we need to be able to
distinguish what is an excitement today, because tomorrow it becomes a known feature and the day
after it is used throughout the whole world.
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Student: LE ANH TUAN MBAOUM0512 Class 1C ID: 2448512
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2.2. Queuing theory of customer satisfaction.
In customer satisfaction, each theory will have a different opinion of each author. Similarly with
Kano’s customer satisfaction theory is to have Queuing theory which discusses also the effecting
factors to satisfaction. The Queuing theory indicates that Speed (waiting) of service has been
shown to provide businesses a competitive advantage in the marketplace, it means clearly that the
primary issue in queuing management and customer satisfaction is not the actual amount of time a
customer waits for service, but the customer’s perception about that wait and the associated level of
satisfaction. A highly satisfied customer will be very likely to provide repeat business and spread
the positive experience by word of mouth (advertising), resulting in increased revenues and
profitability. Example: I just arrived at my local pharmacy to get a new prescription filled and to
pick up a few other things. There is a line of five people at the register and another six people
sitting in the waiting area. By the time I get to the counter to hand the cashier my prescription, 10
but also in the quality of service for the wait. Any company brings to high customer satisfaction
which customer loyalty will also be high. Satisfaction and customer loyalty is proportional to each
other. All are illustrated with specific examples.
Through the two showed theory above, we can understand that there are factors effected customer
satisfaction which each firm should find out to satisfy their.
Lecturer: Dr. TRAN UT ASSIGNMENT – BMBR5103
Student: LE ANH TUAN MBAOUM0512 Class 1C ID: 2448512
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3. Empirical Literature.
In this section will give us an overview of what the customer satisfaction is, Techniques to Measure
Customer Satisfaction, relation between customer satisfaction and service quality, Customer
Satisfaction Index Mode.
3.1. What is Customer Satisfaction?
The customer satisfaction becomes an important asset for businesses and organizations in an effort
to improve the quality of the service, to maintain loyalty, enhance the competitiveness of
enterprises. In 1989, the index of measuring the level of satisfaction was first launched in Sweden
(Swedish Customer Satisfaction barometer - SCSB) was established customer satisfaction index for
the purchase and consumption of products and services domestic service. And in the following
years, this index was developed and widely applied in developed countries like America - ACSI,
Norway - NCSI, Denmark - DCSI and EU countries - ECSI (1998). This index can be done on the
national level (enterprise, how the industry will meet for their customers) or internal angle sector
(compare the satisfaction of the business in within a sector) and a comparison between the different
times (to see the change). Since then, the business can know its position, the customer reviews for
businesses to plan the business goals and strategies. So to understand what customer satisfaction is,
we will have many various outlook to the concept of satisfaction by everyone, the following is
detailed outlook:
There are two principal interpretations of satisfaction as a process and satisfaction as an outcome
(Parker and Mathews, 2001). Early concepts of satisfaction research have typically defined
satisfaction as a post choice evaluative judgment concerning a specific purchase decision [Oliver,
Student: HA TRIEN BANG MBAOUM0512 Class 1C ID: 2448444
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result of a cognitive and affective evaluation, where some comparison standard is compared to the
actually perceived performance. If the perceived performance exceeds expectation, customers will
be satisfied. Otherwise, if the perceived expectations are met with performance, customers are in an
indifferent or neutral stage.
Customer satisfaction is defined as a customer’s overall evaluation of the performance of an
offering to date. This overall satisfaction has a strong positive effect on customer loyalty intentions
across a wide range of product and service categories (Gustafsson, 2005).
The satisfaction judgment is related to all the experiences made with a certain business concerning
its given products, the sale process, and the after-sale service. Whether the customer is satisfied
after purchase also depends on the offer’s performance in relation to the customer’s expectation.
Customers form their expectation from past buying experience, friends’ and associates’ advice, and
marketers’ and competitors’ information and promises (Kotler, 2000).
Factors which determine the extent of expectations are: customer needs, total customer value and
total customer cost. It is mentioned by researchers who study customer choice that choosing a
product or service is only one of the stages customers go through. A purchase decision is
influenced by the buyer’s characteristics. These include cultural, social, personal and psychological
factors. In addition to the buyer’s characteristics, a purchase decision is influenced by the buyer’s
decision process. The typical buying process develops through five stages: 1 new recognition; 2
information search; 3 information evaluation; 4 purchase decision and 5 post-purchase evaluation
(Chaston, 2001).
Searching for information is a key stage of a customer’s decision-making process and may include
a search for both internal and external information. As the perceived risk of a purchase decision
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increases, consumers search for more information in order to cope with uncertainties about the
potential positive or negative consequences (Jihye Park, 2005).
quality. In fact, when the expectation is higher can feel the quality standards of the customers for
the product or vice versa. Therefore, the requirements for product quality and service provided to
customers must ensure and be satisfied on the basis of their satisfaction. Customer satisfaction is
formed on the basis of perceived quality, expectations and perceived value, if the quality and
perceived value higher expectations will create customer loyalty, otherwise, there is a complaint or
complaints about consumer products that they (as Figure 2.1).
Figure 2.1: The Model of American Customer Satisfaction Index – ACSI.
Perceived
value
Customer
Satisfaction
Complaint
Expectations
Perceived quality
Loyalty
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Following that, Model of European Satisfaction Index (ECSI) is a certain difference. Compared
with ACSI, photos of the product, the brand has a direct impact on the expectations of our
customers. Meanwhile, customer satisfaction is the impact Synchronization of 4 factors photos,
perceived value, and perceived quality of both tangible and intangible products. Typically, only of
ACSI is often applied to the field of application also ECSI indicators usually measure products, the
industry (Figure 2.2).
Figure 2.2: The Model of European Satisfaction Index – ECSI.
4. Research Model.
On the basis of the theory and the results of previous studies are concerned, the author inherited the
SERVQUAL scale by Parasuraman (2005), and edited five elements: means tangible, reliable,
responsive, make security and empathy into 4 elements: product quality, price, packaging and
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H1
H2
H3
H4
Figure 2.3: Proposed Research Model.
5. Conclusion.
This chapter presents a summary of the theory and research related to customer satisfaction,
product quality, the relationship between product and customer satisfaction. On the basis of
theory and related research, the author inherited and discovered from the study of the
SERVQUAL scale by Parasurama (2005) and other same study include 4 components: product
quality, price, packing and brand with purpose towards the analysis, as well as components for the
measurement of customer satisfaction are using, have used and will use packaged Birthday Cake
in inner HCM city.
Product quality
Price
Packaging
Brand
Customer
Satisfaction
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Student: LE ANH TUAN MBAOUM0512 Class 1C ID: 2448512
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CHAPTER 3: RESEARCH METHODOLOGY
1. Research Framework .
Figure 3.1: Framework of research on the relationship between product quality and customer
satisfaction (Source: General Studies).
Practical research
Research models / theories
Quantitative Methods
Qualitative Methods
Results / reports
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Student: LE ANH TUAN MBAOUM0512 Class 1C ID: 2448512
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3. Study Design.
To ensure scientific research is conducted through two main stages: (1) research to develop
interview; (2) quantitative research to collect and analyze survey data, testing the model.
Specifically, the two phases are presented in the following sections:
3.1. Qualitative Methods.
The objective of the research phase detect the factors that affect customer satisfaction, to adjust
the scale to match specific quality products at the places of sale Birthday Cake packaging in Ho
Chi minh City area. The results of the research in order to identify the components of product
quality affect customer satisfaction. And on that basis, to discuss and determine the scale for each
factor, build a preliminary interview questions.
3.2. Quantitative Methods.
After completing the preliminary questionnaire, a pilot study was done to ensure that the question
is appropriate and the question is understood by most people. 10 preliminary questions for 10
clients are using Birthday Cake packed on the inner city, then discuss directly with each
customers to see if they can easily understand each question, and completed a formal
questionnaire for extensive interviews.
The study was officially implemented by the method of quantitative research, customer interviews
directly on area Ho Chi Minh City.
3.2.1. Determining the sample size.
With known overall unit (N = 721 824) - according to the statistics bureau and DUC PHAT
company, so the sample size is calculated by the formula Slovin: