Factors affecting customer satisfaction on products of hong lam joint stock company

NATIONAL ECONOMICS UNIVERSITY BUSINESS SCHOOL *** FACTORS AFFECTING CUSTOMER SATISFACTION ON PRODUCTS OF HONG LAM JOINT STOCK COMPANY Bachelor of Business Administration in English (E BBA) Thesis Full[.]

NATIONAL ECONOMICS UNIVERSITY

BUSINESS SCHOOL -*** -

FACTORS AFFECTING CUSTOMER SATISFACTION ON PRODUCTS OF HONG LAM JOINT STOCK COMPANY Bachelor of Business Administration in English (E-BBA) Thesis

Full-name : Tran Thi Ngoc Anh   Class : E-BBA 7A

        Supervisor : MA Nguyen Thi Thu Trang

Hanoi, 2019

In this first part, I want to give the most sincere and most profound thanks to

Ms Nguyen Thu Trang, who dedicated her guidance to this essay Despite her busywork, she always enthusiastically edited lessons, specific instructions for eachperson, gave sincere advice as well as encouraged her encouragement during theprocess of completing the thesis Perhaps, this essay will be difficult to completewithout much guidance and encouragement from her

Secondly, I want to express my gratitude and appreciation to those who havespent all their time and effort to help me to complete this graduation thesis Thankyou for your family and always support you for me Thank for EBBA friends whohave always helped and beside me, making my college life more wonderful thanever

Furthermore, I would like to thank the teachers from the BSNEU who havealways been enthusiastic to teach and support us throughout our university life.Once again, I want to send my most sincere thanks to everyone

Hanoi, 2019 Tran Thi Ngoc Anh

TABLE OF CONTENTS

ACKNOWLEDGEMENT 1

ABRREVIATIONS 6

LIST OF FIGURES 7

LIST OF TABLES 8

INTRODUCTION 9

1.1.Rationale 9

1.2.Scope of the research 10

1.3.Research Objectives 11

1.4 Research questions 11

1.5.Research Methodology 11

1.5.1.Research process 11

1.5.2.Data collection 13

1.5.3.Data analysis 14

1.6 Research structure 16

CHAP 2: THEORETICAL FRAMEWORK OF CUSTOMER SATISFACTION 17

2.1 Overview about Customer Satisfaction 17

2.1.1 Concept of customer satisfaction 17

2.1.2 The significance of consumer satisfaction 19

2.2 Models to analyze customer satisfaction 21

2.2.1 American Customer Satisfaction Index (ACSI) 22

2.2.2 Research model of Zeithaml and Bitner 23

2.2.3 European Customer Satisfaction Index (ECSI) 24

2.2.4 “The effects of marketing mix on consumer satisfaction” Selim Ahmed & Md Hbibur Rahman, 2015 26

2.2.5 Research model “Evaluating Customer Satisfaction For Red Sai Gon Beer

Products In Ninh Kieu District Can Tho” (Tran Thi Bich Lien, 2014) 27

2.3 Proposed research framework to measure the factors influencing on customer satisfaction about product in Hong Lam joint-stock company 28

2.3.1.Product Quality 29

2.3.2.Brand 31

2.3.3.Marketing – Promotion 32

2.3.4.Distribution 33

2.3.5.Price 33

CHAP 3: CURRENT SITUATION OF CUSTOMER SATISFACTION TOWARDS PRODUCTS OF HONG LAM JSC 35

3.1 Overview of Hong Lam joint-stock Company 35

3.1.1 History 35

3.1.2 Mission and vision 39

3.1.3 Key business fields 40

3.1.4 Organizational culture 40

3.1.5 Organizational structure 42

3.2 Analyzing found factors which affect customer satisfaction in Hong Lam joint-stock company 42

3.2.1 Respondent profile 42

3.2.2 Data testing 47

3.2.3 Customer evaluation on dimensions 55

3.2.4 Linear Regression 61

3.3 Summary findings 64

3.3.1 Achievements 64

3.3.2 Shortcomings 65

CHAPTER 4: RECOMMENDATIONS TO IMPROVE CUSTOMER SATISFACTION OF HONG LAM’S PRODUCT 67

4.1 Long-term development orientation 67

4.2 Recommendation 68

4.2.1 Boosting Promotion 68

4.2.2 Improving product quality 69

4.2.3 Keeping Distribution Channel 70

4.2.4 Maintaining Suitable Product Price 71

4.2.5 Developing Branding 72

CONCLUSION 73

REFERENCES 74

APPENDIX 75

LIST OF FIGURES

Figure 1 Research process 10

Figure 2 American Customer Satisfaction Index model 20

Figure 3 The Zeithaml and Bitner’s model 21

Figure 4 European model of customer satisfaction index model 22

Figure 5 The Selim Ahmed & Md Hbibur Rahman’s model 24

Figure 6 The Tran Thi Bich Lien's model 25

Figure 7 The research model applied for Hong Lam company 27

Figure 8 Hong Lam JSC’s structure 40

Figure 9 Customer's age 41

Figure 10 Customer’s occupation 42

Figure 11 Customer’s gender 43

Figure 12 Customer’s Income 44

LIST OF TABLES

Table 1 KMO and Barlett’s test 45

Table 2 Reliability test for dimension Product Quality 46

Table 3 Reliability test for dimension Marketing – Promotion 47

Table 4 Reliability test for dimension Brand 48

Table 5 Reliability test for dimension Brand 49

Table 6 Reliability test for dimension Price 50

Table 7 Reliability test for dimension Price 51

Table 8 Reliability test for dimension Distribution 52

Table 9 Mean of Product Quality Rating 53

Table 10 Mean of Marketing – Promotion Rating 54

Table 11 Mean of Brand Rating 55

Table 12 Mean of Price Rating 56

Table 13 Mean of Distribution Rating 57

Table 14 Mean of Customer Satisfaction Rating 58

Table 15 Regression 59

Table 16 ANOVA of regression analysis 60

Table 17 Coefficients of regression analysis 60

INTRODUCTION 1.1.Rationale

In the era of the modern economy, the retail and FMCG industry are gaininghigh market share, especially in large urban areas The birth of many companies indifferent size and type will create a perfectly competitive market for all businesses.Therefore, the importance of each company to occupy market share is to understandcustomer psychology and take a customer-centric approach Customer satisfaction is

a value measurement of any product or service Especially, when the society grows,competition among industry rivals is growing, alternative products are no longerlacking, grasping the psychological customers and satisfying their needs is veryimportant for the development of any business Thus, it is necessary for firms toresearch in order to obtain consumer satisfaction with products and services

Customer satisfaction is the knowledge of customers about a product orservice that represents subjective judgments or opinions It's a kind of personalfeeling after satisfying the customer's needs Customer satisfaction is determined byexperience, especially knowledge about the product or service After the purchaseand use of the product, customers have a comparison of reality and expectations thatcan be used to assess their satisfaction or dissatisfaction

Customer value creates satisfaction - the level of customer satisfaction.Enterprises need to measure the level of their customer satisfaction and even theirdirect competitors by doing the surveys or imitating shoppers The informationabout the decrease in the level of customer satisfaction of the business against itsopponent is a warning signal about the loss of customers, the reduction of the marketshares in the future Setting up information channels for customers to submitcomments or complaints is essential However, the fee level cannot be used as ameasure of customer satisfaction, as most customers will not complain if they arenot satisfied

The most important is to choose the appropriate method and measure, as thishas the best effect For example, time-based metrics and scale metrics are more

appropriate than others for improvement programs that measure customersatisfaction and screening customer perceptions.

The Hong Lam brand was born from a family workshop and, after nearlytwenty years of growth and development, Hong Lam is proud to be a pioneer in theprocessing of “ô mai”, jam and fruit In Vietnam The year 2000 marked a majorshift in the company's strategy when Hong Lam opened its first retail store at 11Hang Duong In 2012, Hong Lam blew up its network of stores in Hanoi and themajor northern cities To date, Hong Lam has a chain of 25 stores and more than 40stores in shopping centers across the country Every year, Hong Lam serves 3.5 to 4million weekly and international retail customers, Hong Lam's products still meet 5criteria: "Delicious - Clean - Nice - Thoughtful - Friendly" The brand has receivedthe love and trust of many customers

Currently, the company has invested more in modern and more professionalproduction lines Also, the management of the company is well aware that thequality of the products and the quality of the service at the most reasonable cost arethe decisive factors for the survival of a company Moreover, especially in thecurrent competitive economic situation, as more and more companies producesimilar items at competitive prices, customer satisfaction with the products of manyaspects are more necessary than ever Product quality assessment, product prices,product diversity, the basis of the theoretical and general bases of Hong Lam, whileoffering solutions to improve quality and productivity promote the inherent goodvalues

Capturing the necessity of the problem, the research topic "Factors affectingcustomer satisfaction on products of Hong Lam joint stock company" is carried out

to have an objective view and the science of customer satisfaction with the stores ofthe "ô mai" Hong Lam and based on that proposed solutions to improve the storequality to meet the daily needs of customers of Hong Lam Joint-Stock Company

1.2.Scope of the research

The object of research: Customer satisfaction is buying products from theHong Lam store Since then, the company has the most accurate vision of consumerviews and attitudes about the products they market and can find a way to reach theirtarget customers.

Research location: Hong Lam retail chain stores

Time: Collecting secondary data and primary data from 11/2018 to 12/2018

1.3.Research Objectives

Analyze customer satisfaction with the products and services provided on theand factors that influence customer satisfaction and consumer behavior Synthesizeinformation from both domestic and foreign studies to see different perspectives anddevelop a theoretical model for the topic

Research is designed to achieve the following objectives:

- Identifying the model to measure satisfaction of customers toward the Hong Lam’sproducts

- Evaluating customer satisfaction with products of Hong Lam Joint StockCompany

- Proposing some solutions or recommendations to improve the customersatisfaction at Hong Lam Joint Stock Company

1.4 Research questions

This thesis stems from the search for answers to factors impacting customersatisfaction with Hong Lam Company's products, the current level of perception ofservice quality factors, the level of satisfaction and the relationship between factorsaffecting customer satisfaction Therefore, the research questions are defined asfollows:

- What is the customer satisfaction’s status for the products of Hong Lam?

- What factors impact on customer satisfaction when using products?

- What are recommendations to improve customer satisfaction at Hong Lam JointStock Company?

1.5.Research Methodology

1.5.1.Research process

Figure 1 Research process

Source: The author’s research (2018)

Collect information by distributing 120 questionnaires to customers whopurchase products in two branches of the Hong Lam retail chain The application isseparated into two sections; the first part concerns the demographics of clientssurveyed with criteria of age, sex, income and profession The second part is aquestion about factors affecting customer satisfaction that are rated on the Likertscale on 5 points

After the survey participant has completed the survey, the researcherimmediately collects The purpose of this random survey and survey is to ensure theobjectivity of the research process and at the same time to evaluate the researchproblem from many different perspectives

• Interview:

Students interview five random clients in a face-to-face interview to learntheir attitudes and feelings about Hong Lam's products From there, we will betterunderstand the situation of factors affecting customer satisfaction.

- Dao Khanh Huyen – Customer

- Nguyen Ngoc Han – customer

- Nguyen Quoc Minh – customer

1.5.4.1.Quantitative research

Quantitative research methods often focus on collecting digital data orconverting data into numbers for analysis The conclusions of the data analysis ofquantitative research methods are mainly based on the general principle, namely: i.h.the majority Moreover, in this study, quantitative research is the type used.Quantitative research is a direct influence on independent variables and dependentvariables

1.5.4.2 Descriptive statistic

Descriptive statistics are understood as methods of collecting, summarizing,calculating and presenting data, describing the essential characteristics of the data,collected in different forms From there, it reflects the general purpose of theresearch

1.5.4.3 Reliability test

Since research utilizes overview inquiries to incorporate components with theexamination display To confirm the consistent quality of these elements on the offchance that they have a place with an examination idea, the creator utilizes theCronbach Alpha coefficient to check and the correlation coefficient of the aggregatevariable Factors that are problematic will be barred from the pursuit format andwon't show up in the factor investigation (FFA) The base choice paradigm forCronbach's alpha is 0.6 (Hair and accomplice, 2006), the aggregate correlationcoefficient under 0.3 is viewed as a waste variable and naturally expelled from thescale (Nunally and Burstein, 1994).

1.5.4.4 Exploratory factor analysis

Once the concepts (factors) tested by the Cronbach Alpha Scale continue to

be included in factor analysis (EFA) Factor analysis helps researchers to extractpotential factors from a smaller and more significant set of observed variables.When analyzing EFA in the study, some standards apply:

Test the suitability of the analysis factor with KMO data Olkia) If the KMO value is greater than 0.5, factor analysis is therefore appropriate(Garson, 2002), whereas with a KMO value less than 0.5, factor analysis is notappropriate for the present data

(Kaiser-Meyer-The Number of Factors: (Kaiser-Meyer-The number of factors is determined according to the eigenvalue index, which represents the variation explained by each factor According to Kaiser standards, factors with a lower intrinsic value are excluded from the research model (Garson, 2002) The criterion of variance explained: The sum of false quotas must be more considerable than 50% (Hair and partner, 1998).

1.5.4.5 Linear Regression

"Linear Regression" is a statistical technique to regress data with variablesthat are dependent on continuous values, while independent variables can havecontinuous values, or classification values In other words, "linear regression" is amethod for predicting the dependent variable (Y) as a function of the value of theindependent variable (X) It can be used in cases where a serial number is to bepredicted For example, you can specify the time at which a user stops a particularpage or the number of pages viewed on a web site to predict traffic in a retail store.

1.6 Research structure

Chapter 1: Introduction

Chapter 2: Theoretical Framework of Customer Satisfaction

Chapter 3: Current situation of Customer Satisfaction towards product of Hong LamChapter 4: Recommendations to improve customer satisfaction of Hong Lam’sproduct

CHAP 2: THEORETICAL FRAMEWORK OF CUSTOMER SATISFACTION 2.1 Overview about Customer Satisfaction

2.1.1 Concept of customer satisfaction

"Customer satisfaction" is a term that appears quite often in research articles,and each researcher makes a personal judgment about "customer satisfaction" based

on the experience gained Customer satisfaction is the difference between thecustomers’ experience and their expectations placed on the product

According to Fornell (1995), when experiencing consumption, the frustration

or satisfaction of the customer is their actual reactions or perceptual evaluations ofthe difference of their expectations before and after consumption According to Yi(1990), customer satisfaction is often based on general assessments, perceptions,even psychological reactions when consuming that service or product Hoyer andMacinnis (2001) reiterated that feelings such as acceptance, happiness, excitementand joy could all be associated with customer satisfaction

“Customer satisfaction is a customer's overall attitude toward a serviceprovider, or an emotional response to the difference between what the customeranticipates and what he/she receives, for meeting some needs, goals or desires.”, that

is how Hansemark and Albinsson (2004) defined customer satisfaction

Customer satisfaction is known as an evaluation of a service or product thatsatisfies customers' needs and expectations (Zeithaml & Bitner, 2000) In today'sincreasingly competitive world, the key to business success is providing high-qualityservices and products and then it will create customer satisfaction (Shemwell et al.,1998) Hanzee and Nasimi (2012) argued that the success or failure of a business isdetermined by customer satisfaction with the product or service provided by thatcompany

Kotler (2000) defined as the following: "Satisfaction is a feeling of happy orunhappy of a person as a result of actual comparison of the product (or result) in

customers are provided with satisfactory products and services, they will feel excitedand happy On the contrary, when the product does not achieve what they expected,the customer will feel disappointed In particular, customer satisfaction is theirattitude to a company when its expectations are met or fulfilled throughout the lifecycle of the product or service Satisfied customers remain loyal and continue to buythe company's products.

It can be understood that the pleasant or depressing feeling arises from thefact that the buyer compares the actual benefits to their expectations of the product.The satisfaction or dissatisfaction after purchasing product of the customers depends

on their comparison between actual benefits and their expectations of the product.The concept of the product is known not only as a standard physical object but also

as a service

Churchillå and Peter (1993) also concluded on the basis of studies thatsatisfaction is a condition in which the needs and wants of customers with respect tothe product or service are met or exceeded, resulting in repeated purchases It is thefidelity and value of enthusiastic word of mouth “In order to accomplish a highlevel of customer satisfaction, most researchers believe that service providers willaccommodate a high level of service quality since the quality of service is oftenconsidered as a premise of customer satisfaction.” (Mesay, 2012)

This definition has clearly shown that satisfaction is a correlation between themain perceived benefits and expectations If the main benefits do not meetexpectations, the customer will be disappointed If the actual benefit meets theexpectations, the customer is satisfied If the actual benefit outweighs the customer'sexpectations, satisfaction will exceed expectations

In the current competitive market environment, companies need to creategreater customer satisfaction than their competitors This ensures that the benefitsand commercial benefits of customers are aligned Customer satisfaction,satisfaction affects the brand loyalty of the company However, satisfaction is notsustainable and difficult to quantify The true determinant of customer loyalty is thevalue for the customers

2.1.2 The significance of consumer satisfaction

Transaction costs will be reduced if customer satisfaction is high When thebusiness receives positive feedback on customer satisfaction, they will not have tospend too much effort and money to target new customers Even when customers aresatisfied with the products of the business, they tend to buy more in one shoppingand buy other products of the business

Today, the most critical factor for successful businesses is to meet customer’sexpectations or satisfy their pleasure According to Asker (1995), keeping customersatisfaction and loyalty is one of the primary vital strategies holding the success of

an organisation Homburg et al (2005) said: “When a customer’s experience ishighly satisfied, they will feel satisfied and willing to pay more because this wouldlead to equity in the relationship between output and input” Research results ofHomburg reveal a positive relationship between product and customer satisfaction;customers are willing to pay money for the product if they feel satisfied

Nowadays marketing is increasingly competitive If companies want tosurvive and grow, the most important thing is to be able to count on customersatisfaction in order to achieve their goals Customer satisfaction often passes:

(1) previous experience in the purchase or use of services;

(2) word of mouth information from relatives and friends who have used productsand services;

(3) individual needs

(4) the business promise to customers

When the customers are satisfied with the purchasing, they tend to share theirexperience with those around them, and of course, if they are not satisfied, theyshare it for twice or more People around them boycott or face

For all businesses, customer satisfaction has become one of the top criteria tocreate a competitive advantage High satisfaction can bring many benefits such as:

(1) Loyalty: If customers are satisfied, they tend to trust and faithfully use theproducts and services of the business.

(2) Continue buying more products: When customers need to buy products or whenbusinesses introduce new products, they will be happy to choose the first business.(3) Sharing the experience for others: When a customer has high satisfaction, theywill tend to share their own good experiences about the business for their relatives orfriends

(4) Continue to choose: When there is high loyalty, this may indicate that whencustomers are satisfied with the products and services quality of the company, it isunlikely that they will want to change the brand of a product that has the samefunction

(5) Reduce costs: Enterprises will significantly reduce the number of costs to beable to serve some customers with higher satisfaction and loyalty than serving newcustomers

(6) Willing to pay higher prices: Once customers have a high level of satisfaction,they will still ready to more for the products and services

2.1.2.1 Customer Satisfaction Classification

Some researchers classify customer satisfaction possibly into threecategories, which have different effects on the service provider:

+ Request Customer Satisfaction: This is a positive satisfaction, which is met by agrowing demand from service providers For customers with positive content, theyand their suppliers have a good relationship, trust each other, and feel comfortablewith the transaction They also hope that the service provider can meet their growingneeds Therefore, it is a group of customers that can easily become a loyal customer

as long as they realize that the trade brings many improvements in the delivery ofservices The positive factor is also reflected in the growing demands of customersthat the service provider wants to improve the quality of its services more and more

+ Consistent customer satisfaction: Customers with stable customer satisfaction feelsatisfied with what happens, and do not want to change the way the companydelivers the service These customers feel comfortable, have great interest in thecompany, and are ready to continue to use the service provided by the company.+ Reputed Customer Satisfaction: Satisfied customers have less confidence in thecompany and believe that it is difficult for the business to improve service qualityand change as needed They do not feel satisfied because the company fully meetstheir needs, but because they believe that it is impossible to improve their business.They will therefore not actively contribute to the comments and will not beindifferent to the company's improvement efforts.

Customer Satisfaction can also be classified based on the different classes oftrading systems:

+ Satisfaction with business

+ Satisfaction with products and services

2.2 Models to analyze customer satisfaction

The assessment of customer satisfaction has many different models of research bymany scholars

2.2.1 American Customer Satisfaction Index (ACSI)

Figure 2 American Customer Satisfaction Index model

Source: Anderson, E W and Fomell, C (2000)

The ACSI model explains expectations that affect perceived quality Sensoryvalue is directly influenced by expectations and perceived quality Customersatisfaction is influenced by three factors: expectations, perceived quality andperceived value Meeting the needs and expectations of customers createssatisfaction and, therefore, can create loyalty, can also create complaints tocustomers Complaints are understood as the response of customers when they arenot meeting the needs as expected or committed

Perceived quality: The quality perceived here may be understood as acustomer's assessment of the use of the company's products or services, using orafter using It's easy to see that the longer you wait, the better the customer servicequality and vice versa Therefore, this factor is also affected by the expectationfactor

to loyalty complaining, customers are not satisfied with the product or service theyexpected Customer loyalty can be a big advantage for companies Therefore,companies must be satisfied with their customers and win a customer loyalty.

In the American Customer Satisfaction Index (ACSI) model, the perceivedvalue is influenced by the expected quality and quality of the customer and theimage of the brand At this time, the expectations of the customers have a directinfluence on the perceived quality The higher the expectations of the customer, thehigher the perceived customer quality for the product or service Therefore, thequality requirements of the products and services provided to customers must also

be assured and comfortable on the basis of customer satisfaction Customersatisfaction is created on the basis of expected quality and perceived value If theexpected quality and perceived value exceed the customer's expectations, it will befaithful to the company And conversely, if it is lower, it will create a complaint orcomplaint about the quality of products they consume

2.2.2 Research model of Zeithaml and Bitner

Figure 3 The Zeithaml and Bitner’s model

Source: Zeithaml and Bitner (1996)

2.2.3 European Customer Satisfaction Index (ECSI).

Figure 4 European model of customer satisfaction index model

Source: European Customer Satisfaction Index

The perceived value model of ECSI is directly influenced by the brandimage, expectations, the perceived quality of the product and the perceived quality

of service Satisfaction is directly influenced by four factors: image, perceived value,

quality of product perception and quality of service Customer satisfaction oftendirectly affects customer satisfaction.

The image is an expression of the relationship between the brand and thecustomer association regarding the attributes of the brand The image of companiesand organisations is reflected in the reputation, prestige and trust of service users forbrands of organisations and companies It is a signal that informs customers aboutthe organisation and reliability of the service organisation The image of a company

or organization has a positive or negative impact on the perceived value ofcustomers, service and customer satisfaction

The expectation is to show the expectation and expectation of customers whowish to receive when customers come into contact with companies, organize throughphotos The wait affects the perceived value of the quality of service, the response ofthe company is similar to or greater than the expected level, the perceived value will

be significant and vice versa

Perceived quality: There are two types of perceived quality: the perceivedquality of the product (recent evaluation of the product customer with the product)and the perceived quality of the service (evaluation of translators) Linked asservices during and after sales, conditions of supply and delivery Quality isperceived as an appreciation of the customer about the expectations of goods andservices; it has an immediate impact on customer satisfaction The perceived quality

of the customers is high, the satisfaction of the service is also high and vice versa

Perceptual value: The level of evaluation/perception of the quality of serviceabout the price to be paid or expected to be achieved about the cost of using theservice It is a comparison of the financial costs and the financial costs thatcustomers have to spend to use this service

2.2.4 “The effects of marketing mix on consumer satisfaction” Selim Ahmed &

Md Hbibur Rahman, 2015

Figure 5 The Selim Ahmed & Md Hbibur Rahman’s model

Source: Selim Ahmed & Md Hbibur Rahman (2015)

According to “The effects of marketing mix on consumer satisfaction” củaSelim Ahmed và Md Habibur Rahman, the two authors are based on the ACSIresearch model and the 4P model to build and demonstrate the relationship betweenfactors affecting customer satisfaction including Product Quality, Price, Promotionand Place (Distribution)

- Product Quality: The quality of products evaluated through raw materialsused to produce products must be of clear origin, must ensure environmental safety,product quality control of functional agencies, completeness and authentication ofproduct information

- Price: Price is a form of expressing the value of the currency through thevalue of the goods or services determined through the value of use and customerperception of the product or service they are using Customers may not need to buy

the highest quality products and services, but they can choose products and servicesthat fit their requirements and they feel satisfied.

- Promotion: Buying promotion is a way to attract customers by offeringbenefits to customers including material benefits such as money, artifacts and non-material benefits such as service delivery Advancing popular purchases motivatescustomers to use the company's products

- Place/Distribution: Distribution used in Marketing terminology used todescribe a process to bring products from manufacturing enterprises to end-consumer customers There are many different ways of distribution and areexpressed in many different ways It is reasonable to put products throughdistribution channels to make it easier for businesses to reach consumers, increasingthe ability to satisfy customers

2.2.5 Research model “Evaluating Customer Satisfaction For Red Sai Gon Beer Products In Ninh Kieu District Can Tho” (Tran Thi Bich Lien, 2014)

Figure 6 The Tran Thi Bich Lien's model

Source: Tran Thi Bich Lien (2015)

In order to assess customer satisfaction on products, the author of the study

“Evaluating Customer Satisfaction For Red Sai Gon Beer Products In Ninh KieuDistrict Can Tho” has pointed out 5 factors that directly affect as follows:

- Product Quality: The quality of products evaluated through raw materialsused to produce products must be of clear origin, must ensure environmentalsafety, product quality control of functional agencies, completeness, andauthentication of product information

- Price: The cost of the product is the expression in money - the price of acommodity product, which is parallel to expressing the economic relationshipcreated during the exchange of goods

- Distribution channel: It is reasonable to put products through distributionchannels to make it easier for businesses to reach consumers, increasing theability to satisfy customers

- Promotion: promotion is a way to attract customers by offering benefits tocustomers including material benefits such as money, artifacts and non-material benefits such as service provision

- Brand: The brand makes customers identify products and services ofbusinesses, from which new customers make purchasing decisions, therebyhelping customer satisfaction be enhanced with products

2.3 Proposed research framework to measure the factors influencing on

customer satisfaction about product in Hong Lam joint-stock company

With the current main product "O mai", Hong Lam Joint Stock Company is acompany that researches and conducts mass production of its specific products Thecompany's customers are retail customers, and Most have a preference, the need forthis particular snack should easily have demand for product expectations at a relativelevel and easy for them to become loyal customers However, the most critical thing

is to ensure product quality, supply chain, to maintain customer satisfaction

Therefore, based on the ACSI model platform and previous research "The Effects OfMarketing Mix On Consumer Satisfaction" by Selim and Habibur and "EvaluatingCustomer Satisfaction For Red Sai Gon Beer Products" by Tran Thi Bich Lien.Since then, the author has formed a model of factors affecting customer satisfactionthrough 5 factors: Product Quality, Distribution channel, Price, Promotion, Brand.

Figure 7 The research model applied for Hong Lam company

Source: The author’s research (2018)

2.3.1.Product Quality

Product quality is one of the significant factors to contribute to satisfyingcustomer needs There are many internal factors of product quality and must bementioned as:

- Products reach quality standards

- Delicious and characteristic flavours

- Beautiful colours

- There are many different processed products

- Various sizes

According to the European Quality Control Organization (EOQC), "Quality

is the appropriate level of product for consumer requirements", or according to theInternational Organization for Standardization ISO, which defines ISO 9000 - 1994(TCVN 5814 - 1994) and many countries accept this definition: "Quality is a set ofproperties and characteristics of the product that gives it the ability to satisfy thestated or potential needs hidden "

Products are tangible and interchangeable tangible goods on the market.Product quality is customer perception of product features and benefits for theirneeds regarding necessary attributes

Product quality is consistent with its characteristics (Juran, 1951; Crosby,

1797 The intrinsic properties of the product create the expectation for the customerthat the functionality of the product can meet its requirements For physicalproducts, customers can understand product quality based on product specifications

It is the same as in the information economy, which is the expectations of thecustomers (Mankiw, 2005) On the other hand, customer satisfaction is met withcustomer expectations (Kotler and Armstrong, 2004) As a result, the quality of theproduct comes from the customer's expectations and the inherent characteristics ofthe product Quality can therefore be considered as a reason for the customersatisfaction of the product

Product quality plays an indispensable role in the market, being able tosatisfy expectations and customer needs

A product that is said to be quality when it meets customer expectations,Juran (1951) thinks that product quality is appropriate when used, , Crosby (1979)also believes that quality is the relevance of product features to the needs of thecustomer Many organizations accept this definition of quality as the basic definition

of product quality For example, the standard Vietnamese system (TCVN ISO 8402,1999) assumes that quality is the product's suitability for its properties andspecifications We therefore consider the quality of the product to be the suitability

of the product produced by the parameters provided for this purpose To evaluateproduct quality, compare it with the features and specifications specified by theproduct designer

The product quality is perceived by customers as the product's satisfactionwith their necessary attributes The theory of product quality assessment (Juran,1951; Crosby, 1979) suggests that product quality comes from the suitability of theproduct to the demand On the other hand, meeting the demand following customers'expectations is to create customer satisfaction So in this study, the researchhypothesis is proposed:

H1: Product quality components positively affect consumer satisfaction withthe Hong Lam's product

2.3.2.Brand

For each brand, the brand is a proven factor for product value Kapferer(2012, p 139) additionally recognises the significance of relationship inside thebrand and contends that the attention presently is on building enduring connectionswhich include profound enthusiastic contacts and reliability that prompts post-buyexercises Accordingly, organisations need to comprehend the significance ofmarking to pick up consumer loyalty to build their business execution

Aaker (1991) and Rory (2000) have appeared with construct a decent brand,able clients increment client fulfilment and prescribe it to other people Gensch(1978) thinks about that marking affects buy goals and consumer loyalty, while itemproperties are not recognizable Graeff (1996) referenced that when the picture ofthe client itself is like that of the brand, consumer loyalty will be influenced.Romaniuk and Sharp (2003) built up a definite connection between marking andconsumer loyalty

The brand is a gathering of discernment, making communication in thepsyches of buyers; The brand's esteem is not a logo, a promoting effort, or theproducts and ventures that the organisation gives to its clients That is the reason it iscalled an aggregate brand since it is the aftereffect of an aggregate client encounter.Great brands are resources for the organisation They make riches for theirorganisations, their networks and their nations The estimation of a brand promptschanges in conduct, guarantees a future stream of benefit for the organisation andmakes an incentive for the organisation

On the off chance that discerns how to oversee mark adequately, with a smartpromoting effort, buyers can be persuaded to pay a price far above the product price.This is the idea of creating considerable value That's how the company control theimage of the items so that buyers recognize that they're making the money they paidout that was set at the company's request., instead of the genuine value products(crude materials, work, transport, and so on.) Run of the mill models can berecorded are the instances of cell phone organisations like Apple or Samsung withthe price charged for brand represented a vast extent of the product price

H2: Brand components positively affect consumer satisfaction with the HongLam's product

2.3.3.Marketing – Promotion

- Many types of incentive programs

- Attractive promotion program

According to Selim Ahmed and Md Habibur Rahman, the study on therelationship between the satisfaction of customer and marketing mix naturallycharacterised and underscored the impact of advancement on consumer satisfaction

As stated by the Chartered Institute of Marketing (2004), "advertising combination"

is a term used to define the set of tools that a company can use to effectivelycommunicate the benefits of its products or services to its customers In this way it issaid that the "advertising mix" includes devices for sales promotion, advertising,advertising, transactional advertising, coordinated sales promotion and direct

marketing Organizations must inform customers about the service and product theyoffer to help the association survive in targeted working conditions Activities ofmarketing mix can be advantageous regarding social and monetary movement byempowering "healthy competition".

H3: Promotion components positively affect consumer satisfaction with theHong Lam's product

2.3.4.Distribution

- Many branches for customer to buy products

- Distribute products for retail store, supermarket

As the study by Selim Ahmed and Md Habibur Rahman shows, adistribution channel or location is a method for transporting products to the buyerand the dimension of product availability for buyers This component of themarketing mix is similar to the vehicle of other elements of the showcase(promotion, price and product) Without space the buyer will not address theproducts A distribution channel can be described as "the way in which goods andservices flow in one direction (from vendor to the consumer) and the paymentsgenerated by them that flow in the opposite direction (from consumer to thevendor)”

H4: Distribution components positively affect consumer satisfaction with theHong Lam's product

2.3.5.Price

Product prices are an essential factor in customer satisfaction, as prices arequality external information (Kaurra, 2012) Product prices create attractiveness orrepulsion for customers (Moroe 1989, Adaleeb and Conway 2006), especially whenprices are a function of product quality In a competitive business environment,customers always compare the prices of companies offering the same product line(Adaleed and Conway, 2006) This is becoming increasingly important for productswith clear standardisation If there is no difference between products, customers will

tend to choose products at a reduced price Numerous other studies show therelationship between product and service prices and customer satisfaction (Adaleedand Conway, 2006, Dhamarling and Kanna, 2011, Kaura, 2012), in which a gloomyperception of the price goes to customer satisfaction.

Sometimes customers trust to use the company's products not only because ofquality but also because of reasonable prices Two products with the same quality,customers, tend to evaluate and choose Choose then to decide which products aremore affordable, but still enough and fit the criteria that customers want from thebeginning Some customers still choose products at high prices because they thinkthat the higher the price, the better the product quality

Price of products and services is an essential factor affecting customersatisfaction because the price is information outside of quality (Kaura, 2012).Product price attracts or repels consumers (Moroe, 1989), especially when the price

is also a function creating a product This becomes even more important withproducts that have standardized nature If they do not make a difference in theirproduct, then consumers will tend to choose other lower priced products Variousstudies showed that the relationship between the product price and customersatisfaction, in which the excellent feel of the price will create satisfaction for thecustomer In other words, the cause is the price of the product and satisfaction is theresult achieved So this study makes the following hypothesis:

H5: Price factor has a positive effect on the satisfaction of customers of HongLam’s products

CHAP 3: CURRENT SITUATION OF CUSTOMER SATISFACTION TOWARDS PRODUCTS OF HONG LAM JSC

3.1 Overview of Hong Lam joint-stock Company.

3.1.1 History.

3.1.1.1 Hong Lam's development process

Hong Lam is known for being the market leader in producing "precious"traditional products with a history of training and development Before the officiallaunch of the name Hong Lam, in 1992, the company had the first "workers" andproduction workers in Tran Phu Initially, the head of Hong Lam researched andproduced apricot samples from natural fruits still used to make apricot since It ismainly produced than to test and customer feedback

After receiving many positive consumer feedbacks on the recently soughtproducts, Hong Lam decided to set up a processing plant in Cot Village - Yen Hoa -Cau Giay - Hanoi with a high worker number 5 people at the same time asproduction and the opening of No 14 kios in Dong Xuan market, it is mainly usedfor wholesale Hong Lam's products were then favored by many customers

As the market is increasingly open and market demand is high, the companyhas decided to switch from wholesaler to retailer Moreover, officially opened thefirst "o mai Hong Lam" shop on Hang Duong Street, home number 11, transferredthe business from the bustling market to the commerce in the ancient town

Recognizing the growing potential of this line of processing products and theincreasing demand for these products, Hong Lam has expanded its plant located inCot Village from an area of 360 m2 to 650 m2 It is hoped that expanding the scale

of production will provide more products to consumers in more places

In 2004, Hong Lam realized that to invest for a long time in this industry anddevelop a large company offering more products and to create new products; asignificant investment was needed The company has received a certificate of

investment license for the construction of a plant in the industrial area of QuangMinh - Me Linh - Vinh Phuc Once authorized, Hong Lam began constructionimmediately and built the CBHQ plant following ISO / HACCP The company isalways observing to promote the progress of construction quickly, safely andcorrectly.

2005 marks a new turning point for Hong Lam in the retail market Thecompany is cooperating and signing a contract with BigC to open the Hong LamBigC chain of stores

In 2006, eager to continue its development and bring the brand of customers,Hong Lam opened the next store at 18 - B7 Pham Ngoc Thach The store is wellreceived by customers

In April 2007, after three years of construction, the CBHQ Hong Lam factorywas inaugurated at the reception of many guests in the hope that Hong Lamdevelops and not just spread the Vietnamese brand in the country but alsointernational

In 2008, Hong Lam reached a milestone in market penetration in the countrywith the expansion of the retail chain on the main streets:

+ 127 Doi Can store

+ Store 46A Nguyen Chi Thanh

+ 102C Thai Thinh Store

+ Store 395 Truong Trinh

+ 1A Pho Hue store

In 2011, marking the path of training and development efforts of 15 HongLam After 15 years, the Hong Lam fruit processing plant has grown from a smallworkshop with five workers, with six departments of 120 employees and offices inHanoi with 48 members

Hong Lam decided to intensify the positioning of the brand The company

of 36 streets of Hanoi, scenic spots and famous Ha Noi history relics At the sametime, Hong Lam has also modified a series of signaling systems with the primarycolors of orange, evoking the tradition and sophistication of ancient Hanoi The goal

of this change, because Hong Lam wants to bring its brand to the public, and beyond

is to bring the Vietnamese brand out of the world In this year, the company has alsomanaged to make the brand "O mai Hong Lam" known worldwide thanks to theDubai show Moreover, Hong Lam has also developed new distribution channelsand new brand identity features using the official website: http://www.honglam.vn

Since 2014, Hong Lam has become stronger and stronger, with more than 25stores in 3 major cities of Hanoi, Hai Phong, Ho Chi Minh, and more than 500employees

Corporate philosophy: "Serve the company with a set of essential Vietnamesegifts." With the mission to serve society, to serve consumers, to let the "nationalsouls" sent in all products, all over the world, Hong Lam has always directed thebrand towards market recognition is "The finest of Vietnamese gifts."

Five criteria for Hong Lam product and service quality policy:

Industrial processing factory, applying ISO 22000 and ISO 14000 standardsand modern management tools, so Hong Lam's products are of high qualityaccording to the criteria "Delicious - clean - beautiful".

- Market Communication Department and Technical Department

The Department of Market Communications is a bridge between customers andbusinesses, between processing plants and distribution systems Hong Lam regularlycaptures customer needs, establishes communication links, and collects informationover time

The technical department focuses on finding new products and applying newproduction technologies to improve the products

- Distribution system

There are 14 stores in Hanoi, two agents and nearly 40 stores in BigC,Vinmart, Lotte, Hiway and Corpmark trade centers We have a team of trainedsalespeople professional on sales methods and services "Thoughtful - friendly."

Become a major sales agent for many national partners specializing inregional specialties The products marketed in Hong Lam always meet the criteria oftaste and safety

3.1.1.2 Products of Hong Lam company

Famous products:

 Salted dry apricot: tamarind, peach, plum, lemonade, kumquat…

 Candy: green rice flakes candy, coconut candy, spicy dry candy,…

 Tea: Thai Nguyen tea, snow tea, jasmine tea,…

 Dried candied fruits

 Gift: Vinh Hoa box, Thai Hoa box…

 Other: Almond, red apple,…

3.1.2.1 Mission

With the mission of serving society, serving consumers, so that the quintessence ofthe nation is passed on to all products, all over the world, Hong Lam Companydirects its products to the market is accepted as "Tinh hoa quà Việt " Each product,from the stage of production by skilled craftsmen, is delivered to each consumermanually by the message "Delicious - Clean - Nice - Thoughtful - nice."

3.1.2.2 Vision

Building and developing the Hong Lam brand becomes a strong point, astarting point in the system to provide products worthy of "The finest of Vietnamesegift"

Commodity Zone: Hong Lam procures raw materials in the mountainousareas of northern Vietnam The fresh fruit of Hong Lam has acquired fresh, greenand clean standards These are the products of mountains and forests, planted andmaintained in a clean environment In particular, many areas of raw materials stillobtain VIETGAP certification Each year, Hong Lam buys tons of fresh fruit,helping to create jobs for ethnic minorities, protecting the environment and greeningbare hills

Processing: Hong Lam has an industrial plant capable of producing highquality, consistent quality products that meet hygiene and food safety standards.Also, the skillful and delicate hands of craftsmen will help traditional products retainthe traditional flavor, ensuring three elements "Delicious - Clean - Beautiful."

Distribution: Hong Lam has an extensive distribution system, with the service

"Thoughtful-friendly" The distribution system Hong Lam is not only a place of sale,but we also bring solutions to solve the problems of the municipality Assembly forcustomers

Customer Service: A product only becomes an elite product when thecustomer appreciates and feels it Will customers be the last to conclude that theproduct Hong Lam is worthy of the four words "The finest of Vietnamese gift”