Các yếu tố ảnh hưởng tới sự sẵn lòng chi trả cho dịch vụ quản lý vận hành nhà chung cư trên địa bàn Hà Nội. Các yếu tố ảnh hưởng tới sự sẵn lòng chi trả cho dịch vụ quản lý vận hành nhà chung cư trên địa bàn Hà Nội. Các yếu tố ảnh hưởng tới sự sẵn lòng chi trả cho dịch vụ quản lý vận hành nhà chung cư trên địa bàn Hà Nội. Các yếu tố ảnh hưởng tới sự sẵn lòng chi trả cho dịch vụ quản lý vận hành nhà chung cư trên địa bàn Hà Nội. Các yếu tố ảnh hưởng tới sự sẵn lòng chi trả cho dịch vụ quản lý vận hành nhà chung cư trên địa bàn Hà Nội. Các yếu tố ảnh hưởng tới sự sẵn lòng chi trả cho dịch vụ quản lý vận hành nhà chung cư trên địa bàn Hà Nội. Các yếu tố ảnh hưởng tới sự sẵn lòng chi trả cho dịch vụ quản lý vận hành nhà chung cư trên địa bàn Hà Nội. Các yếu tố ảnh hưởng tới sự sẵn lòng chi trả cho dịch vụ quản lý vận hành nhà chung cư trên địa bàn Hà Nội. Các yếu tố ảnh hưởng tới sự sẵn lòng chi trả cho dịch vụ quản lý vận hành nhà chung cư trên địa bàn Hà Nội. Các yếu tố ảnh hưởng tới sự sẵn lòng chi trả cho dịch vụ quản lý vận hành nhà chung cư trên địa bàn Hà Nội.
Trang 1CHAPTER 1 INTRODUCTION OF THE THESIS1.1 Rationale
Hanoi is one of the two largest cities in the country and has the highest percentage of people living in condominiums in the country According to the Hanoi Department of Construction, currently, the number of condominiums buildings in Hanoi accounts for 58% of the total number of condominiumss in the country and is expected to increase rapidly in the coming years With rapid urbanization, condominiumss in Hanoi are not only abundant in number but also diversified in segments due to the diversity in characteristics of condominiums users
Living in an condominiums building requires each resident to jointly use the building's operation management services These are services that are closely related
to people's quality of life However, at present, in many condominiums complexes across the country in general and in Hanoi in particular, there are still conflicts and disputes between residents and building management service providers These disputes are often related to service providers' service delivery issues and service price mismatches The cause of this situation can be explained by the conflict in the wishes
of the two parties: the service provider and the user People always expect to receive good quality service, but at the lowest possible price Meanwhile, service providers want to be paid as high as possible for their services
So how should condominiums management service providers set prices to not only cover costs but also maximize profits? On the social side, when service providers make good profits, they will also contribute more to society through creating jobs, paying taxes, participating in community contribution activities The goal of reaching the highest possible price, and at the same time being willing to pay by customers, is what operation management service providers always want However, although people using the service expect good quality of service, are they willing to pay a high price for that service? How to make people willing to pay high prices? These are issues that service providers need to understand in order to satisfy the needs
of both sides Therefore, in practice, study the factors that affect the willingness to pay for condominiums management and operation services (with a high price based
on the benefits that residents receive from the service provider) is necessary and meaningful
Trang 2Theoretically, “willingness to pay” is a topic that has been studied in many
different fields due to its high applicability In the study of factors affecting the
willingness to pay, service quality has been shown to have a positive relationship with
the willingness to pay a high price for that service (Zeithaml et al., 1996; Riadh Ladhari
et al., 2009; Yuwen Chen et al., 2015…) However, there is disagreement on research
results on the relationship between components of service quality and behavioral
intentions, including willingness to pay Many studies show that these relationships are
different from service industry to industry (Bloemer et al., 1999) In other studies,
perceived price fairness has also been shown to have a relationship with willingness to
pay (Bolton et al., 2003; Sarah Maxwel, 2002; Lan Xia et al., 2004) However, the
number of studies is still small, and there are cases where this relationship is not
confirmed (Jin Young Chung et al., 2009) Therefore, according to the authors, more
future studies are needed to further clarify the relationship between perceived price
fairness and willingness to pay (Lan Xia et al., 2004; Jin Yong Chung, 2011) Trust has
also been shown to have a relationship with willingness to pay in the studies of authors
such as Luísa Augusto (2020), Hean Tat Keh (2009), Neve Isaeva et al (2020)
However, trust differs across cultures (F.D Schoorman et al., 2007), so the relationship
between trust and willingness to pay is not always confirmed in studies across industries
and different countries (Giuseppe Nocella et al., 2010) Thus, for studies on factors
affecting willingness to pay in the world, although the relationship between the
components of service quality, perceived price fairness and trust with willingness to pay
has been shown by a number of studies, but there is no consensus on the research results
Especially the specific factors of the industry and country can affect those relationships
Meanwhile, condominium operation management service is a type of service with its
own characteristics, however, there have been no studies on factors affecting
willingness to pay for condominium operation management services, especially in
Vietnam because this field in Vietnam is still quite new
Thus, based on theory and practice, the PhD student chose the topic "Factors
affecting willingness to pay for condominium operation management services in
Hanoi" The thesis focuses on building and testing the relationship between three
groups of factors: service quality, trust in service providers, and perceived price fairness
to willingness to pay for condominium building operation management service
Trang 31.2 Research objectives
The overall objective of the thesis is to propose and test a research model on factors affecting willingness to pay for apartment building management and operation services, in Hanoi In which the author focuses on testing the impact of three groups of factors: components of service quality; perceived prices fairness of service; and trust in the service provider On the basis of the tested relationships, combined with the actual situation of the above factors, propose recommendations to stakeholders in the field of condominium building operation management services
On that basis, the thesis sets out specific objectives:
- Testing the relationship between the components of service quality and the willingness
to pay for the service provider's condominium operation management service
- Test the relationship between residents' trust in the service provider and the willingness
to pay for the service provider's condominium operation management service
- Test the relationship between residents' perceived fairness of service prices and the willingness to pay for the service provider's condominium operation management services
- Assess the current situation of factors affecting the willingness to pay for condominium operation management services in Hanoi, propose recommendations to stakeholders in the field of condominium operation management services
1.3 Research subjects, scope and method
1.3.1 Research subjects
Factors affecting willingness to pay for condominium operation management services Willingness to pay is understood as a resident's intention to pay higher prices than competitors based on preference and the benefits residents receive from the service provider
1.3.2 Research scope:
Scope of content: The thesis studies the influence of components of service quality, trust in operation management service providers, and perceived fairness of service prices on willingness to pay (a higher prices than competitors) for condominium operations and management services for residents living in condominium complexes
The study was conducted with apartment segments: popular - priced below 25 million VND/m2; and mid-end segment from 25 million VND/m2 to about 40 million
Trang 4VND/m2 The comparison between the two apartment segments will help enrich the research results
Spatial scope: the study was conducted in the area of Hanoi city, because it is an area with a large number of condominiums, diverse in apartment segment, diverse in characteristics of apartment dwellers
Research period: primary data collection period- conducting surveys and interviewing people, experts, and managers takes place in 2019-2021
1.3.3 Research Methods
To conduct the research, the research methods used are: a combination of both qualitative research methods (through in-depth interviews with residents of apartment buildings, experts and representatives of real estate management services providers) and quantitative research (through survey by questionnaire) The collected data were processed using SPSS software
1.4 New contributions of the thesis
1.4.1 Theoretical contributions
The thesis builds a model and tests the relationship between 3 groups of factors: service quality (including 5 components), trust in service providers and perceived price fairness to willingness to pay for condominium operation management services - a field that has its own particularities that are different from other types of services The research results show the impact of the above factors on the willingness to pay for condominium management and operation services in Vietnam, a country where the real estate market is in the "concentrated" stage, there are certain differences with other fields that have been studied before
Research results show that out of 5 components of service quality, only 4 components, namely reliability, assurance, tangibles, and responsiveness, are confirmed
to have a positive relationship with willingness to pay for condominium operation management services Besides, trust has also been shown to have a positive relationship with willingness to pay Perceived prices fairness of service is not confirmed to have a relationship with willingness to pay In addition, two control variables that have a strong impact on the dependent variable are income and age
The study also shows the difference in the level of impact of the above factors
on the willingness to pay between the two segments of popular and mid-end apartments
1.4.2 Practical contributions
Trang 5Service providers can apply measures to improve service quality, increase
people's confidence in order to achieve higher willingness to pay As a result, people
receive better service quality commensurate with the price they will pay Through that,
service providers can offer appropriate pricing policies to both cover costs and achieve
profit goals For example: Service providers only advertise what they can do; develop
processes, service quality standards and supervise the implementation The
management board and the resident community need to clearly agree on service quality
standards corresponding to the price and sanctions for violations in the service provision
contract Investors need to pay attention to the arrangement of the common space and
fire prevention right from the design and construction stage
From the research results, it is also suggested for state management agencies to
issue regulations related to condominium operation management services such as:
promulgating standards and certificates of service quality assurance, building
construction, etc mechanism for selecting service providers since there is no
management board These measures will help limit possible conflicts in the process of
providing and using services, towards a healthy development of the apartment
management service market in Vietnam
The thesis suggests further research directions on customers' willingness to pay
for different services in the real estate sector
1.5 Thesis structure
The thesis has a structure of 5 chapters:
Chapter 1: Introduction to the thesis
Chapter 2: Theoretical basis and overview of research on factors affecting
willingness to pay for condominium operation management services
Chapter 3: Research Methods
Chapter 4: Research results
Chapter 5: Comments and recommendations from the research results
Trang 6CHAPTER 2 THEORETICAL BASIS AND RESEARCH OVERVIEW OF FACTORS AFFECTING WILLINGNESS TO PAY FOR CONDOMINIUM
OPERATION MANAGEMENT SERVICES 2.1 Condominium operation management services
A condominium is a type of house with many floors, including many separate living units, serving many households to live The owner buys and owns the area inside his unit, including the balcony, the apartment's loggia In addition, the condominium building has a common area and services that households in the same building, or building area use together Condominium is a type of real estate, so it also has the characteristics of real estate in general According to Hoang Van Cuong (2017), the characteristics of real estate include: immobility, fixed location, durability, diversity and difference, mutual influence, is a commodity of great value, is a commodity under the direct control of the state, its value, function and exploitation ability of real estate goods depends on management capacity In addition, the ap condominium building has
a number of unique characteristics such as diversity in ownership, diversity in types of ownership: some are owned separately by each apartment owner, and some are jointly owned
Condominium operation management service is a type of service, so it has all the common characteristics of services such as intangibility, heterogeneity and inseparability, and non-storage Besides, the condominium operation management service has its own characteristics that are: Regular, daily use and closely related to the facilities of the building
According to current Vietnamese laws, the operation management services of a condominium building includes the following main tasks: Operating the equipment of the common area, directly serving the daily life of people in the condominium complex; Maintenance of common areas, including maintenance of shared equipment of the building; Provide general services to residents in the building
Studies on condominium operation management services in countries around the world and in Vietnam mainly focus on service quality and service satisfaction The price
of condominium operation management services is often more interested in developing countries, or in nascent market areas However, the number of studies is not much
2.2 Research overview on willingness to pay and influencing factors
2.2.1 The concept of willingness to pay (WTP)
Trang 7There are many expressions of willingness to pay Many researchers approach WTP in terms of the maximum amount of money (Mankiw, 2003; Smith and Nagle, 2002; Wertenbroch and Skiera, 2002…) However, there are other ways of expressing
it According to R Kerry Turner et al (1993) “willingness to pay measures an individual
or society's preference for that good, measuring the level of satisfaction when using a certain good in the market market, as indicated by the price they are willing to pay for the good” Willingness to pay can be broadly understood as one of the behavioral intentions of customers According to Zeithaml et al., (1996) “willingness to pay is the intention of customers to pay a higher price than competitors for the benefits that customers are receiving from service providers"
In the thesis, the author uses the concept that willingness to pay for condominium management services is the intention of residents to pay a higher price than competitors
based on preference and the benefits they receive from the service provider
2.2.2 Research directions on willingness to pay in Vietnam and around the world
The willingness to pay of customers is the subject of research by researchers in many different fields Corresponding to the above definition of willingness to pay, when considering willingness to pay as the maximum amount of money that customers intend
to pay, is the direction of research to apply WTP as a tool to determine a specific amount
of money (the highest, or a percentage increase), that a customer is willing to pay for a good or service (Agnieszka Zalejska-Jonsson, 2014; Andreas Wiencke, 2013; Svante Mandella et al., 2011; Hai Jiang et al., 2016…)
When considering willingness to pay as one of customer's behavioral intentions, researchers such as Zeithaml et al (1996), M Rosario González et al (2020); Alison Dean et al (2002) or Banu Külter Demirgüne (2015); Dwayne A Baker et al (2000)… use a qualitative scale to measure customers' willingness to pay intention for a service provider's services
In Vietnam, for the topic of “willingness to pay” there are also two research directions: considering “willingness to pay” as a specific amount (Nguyen Van Song et al., 2015; Ngo Thi Thuy , et al., 2015; Le Thi Dieu Hien et al., 2014 ), and the research direction considers “willingness to pay” from the perspective of behavioral intention (Huynh Thi Ngoc Diep, Ho Huy Tuu, 2013)
2.2.3 Factors affecting willingness to pay
2.2.3.1 Service quality
Trang 8In the thesis, the author uses the concept of service quality based on the concept
of Cronin and Taylor: Service quality of condominium operation management is the perceived level of customers when using operation management services of condominium buildings To measure service quality, the authors Parasuraman et al (1988) introduced the SERVQUAL model to measure service quality gaps, which has been applied in many studies so far Based on that, Cronin and Taylor (1992) proposed
a refined model to measure service quality, the SERVPERF model, using perceived service as the sole measure for service quality Service quality has been shown to influence customer behavioral intentions, including willingness to pay high prices, which has been demonstrated in many service industries Research by Zeithaml et al (1996) has demonstrated this relationship This is a multidisciplinary study used by many researchers Riadh Ladhar (2009) also demonstrates a similar relationship in the hospitality industry, or studies by other authors in other industries such as pharmacy, tourism, mobile services, etc
2.2.3.2 Perceived fairness of service prices
The relationship between perceived fairness of service prices and willingness to pay is derived from the following theories: justice theory, transaction utility theory, and price fairness theory The theory of price fairness is applied by researchers in research
on willingness to buy, willingness to pay, such as the study of Ali Asadi et al (2014); Sarah Maxwell (2002), Bradley S Jorgensena et al (2006) According to Bolton et al (2003), perception of price inequality will lead to a negative effect on customers' willingness to pay Schröder and Mieg (2008) show that when individuals are asked what amount they are willing to pay for a public good, their answers depend on their perception of justice or fairness price Other researchers have reached similar conclusions
2.2.3.3 Trust
Trust has been discussed in marketing research and is part of many behavioral models, including those of the buyer-seller relationship (Kumar, 1996) Customer trust
is proven by researchers to have a positive effect on willingness to pay G Nocella et
al (2011) showed that willingness to pay for food-related information is influenced by consumers' trust in the manufacturer Luísa Augusto et al (2020) also demonstrate the mediating role of trust in the effects of service sophistication and convenience on willingness to pay a premium price for digital streaming services Giuseppe Nocella et
al (2010) also demonstrated a similar relationship in a study in 5 European Union
Trang 9countries, in the food sector Hay Hean Tat Keh (2009) shows that trust has a direct impact on customers' willingness to pay higher prices
In addition to the above factors, some factors such as customer characteristics include demographic characteristics such as age, gender, race, income, marital status, education and geographical location; along with psychological factors such as activities, interests, attitudes and lifestyle have also been shown to make a difference in willingness to pay
Price fairness has also been shown to have a relationship with willingness to pay However, in some studies such as Jin Young Chung et al (2009), price fairness
in the group of customers with high attachment and awareness of tourist destinations, has no influence Thus, whether price fairness affects the willingness to pay for condominium operation management services is an issue that has not been researched and answered
Second, the research field and the characteristics of different countries lead to differences in research results on the relationship between factors to willingness to pay
Trust has been shown to have a relationship with willingness to pay, however each study was conducted in different national service industry contexts According to F.D Schoorman et al (2007), trust has differences between different cultures, so studying trust in specific contexts will help to better explain the influence of trust
Third, there have not been many studies related to the price of condominium operation management services, especially in terms of customer's willingness to pay
Researches in the world and in Vietnam on willingness to pay mainly focus on the field of environment or clean food, education, etc In the field of real estate or operation management services, there are also no studies on willingness to pay for condominium operation management services Meanwhile, condominium operation
Trang 10management service is a service that has its own characteristics different from other services Therefore, the study of the relationship between the factors mentioned above
in the field has not been studied, in the context of Vietnam is likely to bring new contributions
Trust in service providers
willingness to pay for condominium operation management services
Trang 11CHAPTER 3 RESEARCH METHODS 3.1 Research background
In the past 10 years, the condominium market in Hanoi in particular and the whole country in general has changed and developed rapidly Apartment buildings in Hanoi in the period of 2010 are mainly old apartments, estimated at 73,000 units By
2019, the number of apartment buildings in the city is about 300,000 and continues to increase Regarding condominium price fluctuations in Hanoi, all segments have a slight increase in price year-on-year Newly built apartment projects in Hanoi in 2020 are mainly in the mid-end segment (with prices ranging from over 25 million to over 40 million/m2), the number of popular projects (prices below 25 million/m2) very little The distribution of the location of apartments in Hanoi has also changed, associated with the change of economic development areas in the inner city The apartment market
in Hanoi is still growing strongly in number and expanding in area Along with that, the number of building management and operation enterprises is increasing However, many new businesses have just formed, without much experience
3.2 Qualitative research
3.2.1 Objectives of qualitative research
The purpose of qualitative research is to check the appropriateness of the theoretical model, adjust the scale of variables, and the appropriateness of the language
in the questionnaire At the same time, qualitative research also helps to understand the assessment of experts and residents about the current state of the elements in the model, helping to interpret the research results and make appropriate recommendations
Trang 12(2) people who are representatives of households living in apartment buildings
in Hanoi city (9 people, of which 5 people are living in mid-end segment and 4 people are living in popular segment)
Through in-depth interviews with experts in the field of real estate, and representatives of businesses providing apartment management and operation services, the author draws some conclusions: using "house price" as a basis to grouping apartments into two segments are popular and mid-end Also through expert opinion, the author adjusted the service quality scale including 20 indicators For the perceived price fairness scale, in order to be able to assess the reasonableness of the current service price, the author takes "reference price" as "service price of other apartment buildings"
Interviews with groups of residents showed that, basically, the variables included
in the model are suitable for the context of condominium operation management services in Hanoi When people were asked about the quality of service at their apartment complex, and whether they agreed to pay a high price for apartment operation management services, the respondents were all based on the quality of the service For the perceived price fairness variable, through in-depth interviews, the author found that people compare the service prices of their apartment complex with other apartment complexes to draw conclusions about the suitability of the price There are three levels
of evaluation when comparing the current service price with other apartment complexes, which are lower, equivalent, and higher In addition, residents also have a price-to-cost comparison when considering fairness As for the variable of trust in service providers, the author finds that whether people trust the service providers or not has a significant influence on their responses when asked about paying high prices for services
Quantitative research is divided into two phases, preliminary research to check the reliability of the scale with 100 observations to check the words in the questionnaire,