TITLE: RESEARCH ON FACTORS INFLUENCING CUSTOMER SATISFACTION – A CASE STUDY OF DANAPHA PHARMACEUTICAL COMPANY, VIETNAM

TITLE: RESEARCH ON FACTORS INFLUENCING CUSTOMER SATISFACTION – A CASE STUDY OF DANAPHA PHARMACEUTICAL COMPANY, VIETNAM

PHARMACEUTICAL COMPANY, VIETNAM

Advisor: Shyh-Hwang Lee Co-advisor: Nguyen Xuan Lan

1 Introduction

 Vietnam is a country located in the South East Asia

Vietnam has population of 87 millions in 2010 with

under 75% of population are under 40 year old (General department of statistic, 2010)

 The total value of drugs used over US$ 1.9 billions in

2010 On average, one person spent about US$ 21.8 per year for drug in 2010 (Vietnamese Drug administration, 2010)

 BMI forecasts in the next 5 years, pharmaceutical market

in Vietnam will be a potential market for foreign

companies (Business Monitor International Ltd, 2010)

Background (con’t)

 Currently, the capacity of the domestic pharmaceutical industry can only meet nearly 50% of value, the other mainly come from import

 Under WTO commitments, the foreign pharmaceutical companies have the right to open branches in Vietnam and was directly involved in import of pharmaceuticals, even though no distribution rights

 Vietnam’s pharmaceutical market has strong

competition Nearly 200 domestic enterprises and 500 foreign enterprises

Background (con’t)

 Danapha was founded in 1965 by the government, Since January 1st 2007, company have changed into joint stock company It is located in Danang city, central of

Background (con’t)

 The company has five branches for distributing company’s product nationwide, each branch take care a lot of agencies and pharmacies in many provinces around it

 Beside Vietnam market, Danapha also developed abroad market such as Russia, Ukraine, Cambodia, Laos…

Research motive

 Understanding what factors influencing customer

satisfaction may be a good advantage for company

development in the competitive market

 Not many researches on customer satisfaction have been carried and published in Vietnam

 There is a real incentive for me to help my company

having a better standing in the central of Vietnam

Research purpose

 To identify the key factors which influence customer

satisfaction in pharmaceutical service-a case study at

Danapha pharmaceutical company

 This study also provide to company some suggestions to meet customers’ needs, thereby enhancing customer

satisfaction

 Providing managerial implications for marketing practice

Research procedure

Define the research questions Define research motives & purposes

Literature review, define research model, data collection method Interpretation of data Result & discussion Implications and limitations

2 Literature review

Literature review

Customer satisfaction

 Customer satisfaction construct indicates how much

customers are satisfied, and how well customer

expectations are fulfilled This construct evaluates overall satisfaction level of customers, fulfillment of their

expectations, and company’s performance versus the

ideal provider (Gustafsson et al 2005 ).

 Customer satisfaction is the main factor that influences customer behavior (Woodside, Frey, and Daly,1989)

Literature review (Con’t)

Customer expectation

 Customer expectations are consequent of prior experience with the firm’s products (Rotondaro, 2002) This concept evaluates customer expectations for overall quality, for

product and service quality, and for fulfillment of

customer’s needs

 According to Zeithaml and Bitner (1996), expectations are what customers believe a service or product should or will be

 Customer expectations include two levels, they are the

desired expectation and the adequate expectation

(Parasuraman et al,1991)

Literature review (con’t)

Perceived value

 Bolton and Drew (1991) defined the service value as

“consumer’s overall evaluation of service utility with respect to what they get for what they give”

 Perceived value is considered as one source of

competitive advantage (Woodruff, 1997)

 Five dimensions of value: (1) functional value, (2)

emotional value, (3) social value, (4) conditional value, and (5) epistemic value Different dimensions have

different importance in the decision of customers

Literature review (con’t)

Corporate image

 Corporate image is as the overall impression made on the minds of the public about a firm (Barich and Kotler,1991).

 Corporate image is the result of a process, this process

increase from ideas, feelings, and previous experiences

with a firm that are created from memory and transformed into mental images (Yuille and Catchpole, 1977)

 The image concept evaluates the underlying image of the company, it refers to the brand name and the kind of

associations customers obtain from the company

(Andreassen & Lindestad, 1998)

Literature review (con’t)

Perceived quality

 According to Bayraktar et al (2012), “Perceived quality is

evaluation of consumption experience by the market served

This concept evaluates customization and reliability of a

product or service Customization is the degree to which a

product or service meets requirements of customers, and

reliability is the degree to which company’s offering is reliable, standardized, and free from deficiencies”

 Anderson & Sullivan (1993) verified that perceived quality has been considered one of the important variables effecting on

customer satisfaction

3 Research methodology

Research model

Fig 2 Research model

This study accepts the The Taiwan Customer Satisfaction

Index-automobile industry model (Chiu et al, 2011) for investigating

customer satisfaction as the backbone of research model

Corporate image

Customer expectation

Perceived value Perceived quality

Customer satisfaction

Research hypothesis

We have four following hypotheses:

 H1 Corporate image has a positive effect on customer satisfaction.

 H2 Customer expectation has a positive effect on

Measurement of variable

We have total of 18 items as following:

 Corporate image (3 items): good impression; good

image in the minds of consumers; has a better image than their competitors (Nguyen & Leblanc, 2001)

 Customer expectation (5 items): Overall expectation;

attitude and appearance of employees; employees ability, knowledge, and service; reliability of the products;

products to meet my needs (Chiu et al, 2011)

Measurement of variable (con’t)

 Perceived quality (5 items): attitude, appearance and

kindness of the provider’s staffs, ability, knowledge of Danapha’s staffs, Reliability of products, ability of

products to meet my personal needs, Overall evaluation

(Chiu et al, 2011)

 Perceived value (2 items): product value to the cost,

comparing to other company products

 Satisfaction ( 3 items): provider is a wise one; I did the right thing; satisfied with the selection (Deng et al,2010)

Data collection

 Data collection methods: Questionnaire survey with

structured questions, sent by mail or handout

 All variables were measured by seven- point Likert scale

 Population of this study includes about 150 respondents (pharmacy owners – drug store).

 Samples will be chosen by convenient selection ( from Danapha’s customer list).

 The statistical program packages SPSS 16 will be used to interprete the data

Expected result and implication of result

 I expect that four dimensions (factors) have significant effect on customer satisfaction in pharmaceutical sector

 The study success will be advantage to propose a simple model

to research customer satisfaction in pharmaceutical sector

 Shows the opportunity for pharmaceutical strategists in

Vietnam to explore dimensions effecting on satisfaction before deciding an appropriate marketing strategy.

 Provides the marketing managers seeking for better

understanding of customer satisfaction, in order to focus on

potential marketing activities to maintain or improve customer satisfaction

Time to complete Activity

2012

Sep 1st- Sep 20th Complete chapter 1 & 2

Oct – Oct 15th Questionnaire design

Complete chapter 3

Oct 16th- Oct 31st Pre testing questionnaire survey

Revise questionnaire survey if necessary

Collecting questionnaire survey

Complet chapter 4

Full thesis completed and submitted thesis

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Thanks for

your attention!

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