PROBLEM IDENTIFICATION
PROBLEM CONTEXT
1.1.1 Overview of the motorcycle market
In 2018, Vietnam maintained its status as the fourth largest motorcycle market globally, according to Motorcycles Data, an organization that monitors worldwide motorcycle sales The country ranks behind India, China, and Indonesia in motorbike sales, with the domestic market achieving an eight-year high in sales.
3.38 million bikes, including both local and imported vehicles (3) Vietnam market is dominated by five leading motorcycle producers, notably Honda, Yamaha, Suzuki, SYM, and
Piaggio, which take more than 97 percent of the total market Honda is the market leader in
In Vietnam, the motorbike market share increased from 75.9 percent in 2018 to 78.6 percent in 2019, marking a nearly 3 percent rise Last year, sales reached 3.39 million new motorbikes, continuing a four-year trend of growth.
Figure 1 Motorcycle sales in Vietnam of the five largest brands from 2011 to 2018
Source: Vietnam Association of Motorcycle Manufacturers (VAMM)
1.1.2 Overview of Phat Tien Trading and Service Company Limited
Phat Tien Trading and Service Company Limited, established on January 10, 1998, is a retail company specializing in the sale and service of Honda motorcycles, sportbikes, and automobiles The company operates in Ho Chi Minh City, Long An province, and Dong Nai province.
Currently, besides the headquarter in District 11, the company owns six Honda Exclusive
Authorized Dealer (HEAD) stores, two Wing Service stores, the first Sport Bike showroom in
Vietnam is home to three Honda Automobile Dealer showrooms, employing over 900 staff members These showrooms serve more than one million customers in Ho Chi Minh City and its surrounding provinces.
Phat Tien has been a leading Honda motorcycle business in Ho Chi Minh City and its surrounding areas for over 20 years, specializing in genuine parts, maintenance, repair services, and safe driving instructions To meet the diverse needs of customers, Phat Tien has solidified its pioneering status by being the first to offer a wide range of genuine Honda vehicles.
Phat Tien is a leading Sport Bike Showroom in Vietnam, offering the latest Honda Sport Bike models along with professional maintenance services and genuine spare parts With a commitment to excellence, Phat Tien is establishing its presence in the Automobile Industry through three Honda Dealers—Honda Auto Bien Hoa, Honda Auto Long An, and Honda Auto Saigon - District 2—operating under Honda Vietnam's 5S standards These dealerships not only provide the newest Honda car models but also ensure top-notch maintenance services, authentic parts, and promote safe driving activities for all customers.
By the end of 2019, Phat Tien is the only company nationwide to have an official retail distribution network of Honda's finished products from motorcycle to sportbike and car Phat
Tien is honored by Honda Vietnam in many awards and continuously ranks among the leading
HEAD systems of Honda Vietnam Especially, Phat Tien is honored to be in the Top 500
Largest Private Enterprises in Vietnam (VNR500) in the past 11 years (5) The company also pays great attention to community social activities via Tri Duc Charity Fund
Phat Tien Company Limited's organizational chart illustrates its structure and hierarchy, showcasing the various roles and departments within the company This visual representation is essential for understanding the company's operations and management framework.
1.1.3 Overview of HEAD Phat Tien 5
Established in 2008, HEAD Phat Tien 5 is located at 406A Le Trong Tan Street in the bustling Tay Thanh ward of Tan Phu district, Ho Chi Minh City Its opening marked a significant milestone in Phat Tien company's decade-long operation Over the years, HEAD Phat Tien 5 has contributed substantially to the company's sales and customer service, supported by a dedicated team of 57 employees.
Table 1 Human resources of HEAD Phat Tien 5
2 Head of Sales Division One person
3 Vice Head of Sales Two people
5 Registration employee (Sales) One person
7 Head of Service Division One person
8 Lead of Technician One person
9 Vice-Lead of Technician Two people
11 The lead of Spare Parts One person
12 Employees of Spare Parts Three people
13 Registration employee (Service) One person
Source: Human Resource Department tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
SYMPTOMS
The thesis author conducted a thorough analysis of secondary data from the company's internal reports, specifically focusing on the customer service and service departments, to identify abnormal symptoms that warrant further investigation.
Phat Tien stands out among over 700 Honda dealers in Vietnam, leading in market share and excelling in Ho Chi Minh City As the market growth slows, Honda Vietnam emphasizes customer satisfaction index (CSI) to retain and attract customers amidst competition Aligning with this strategy, Phat Tien prioritizes customer satisfaction, recognizing that while sales generate immediate revenue, service quality fosters long-term profitability Thus, enhancing service quality is crucial for sustainable growth and requires focused investment from the company.
From April to September 2019, the Customer Service department reported that 66% of customers expressed dissatisfaction with the sales and service at Phat Tien, as depicted in Figure 3 Notably, HEAD Phat Tien 5 attracted the highest percentage of service customers among all company stores, accounting for 22%, as shown in Figure 4.
Figure 3: Customer dissatisfaction proportion of sales and service of Phat Tien from April 2019 to September 2019
Sales Service tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Figure 4: Average service customer percentage of HEAD Phat Tien stores from April to September 2019
According to the Customer Service Department's statistics from April to September 2020, Phat Tien 5 experienced a 20 percent dissatisfaction rate among customers, which is five percent higher than the HEAD system's average of 15 percent.
Figure 5: Customer satisfaction rate about Service of Phat Tien 5 and the company
The data analysis from the Customer Service Department indicates a high percentage and significant number of dissatisfied customers regarding the service at HEAD Phat Tien 5 This highlights the urgent need for the company to focus on reducing customer complaints and enhancing satisfaction specifically within the Service segment, rather than prioritizing the Sales segment.
5 Besides, the quantity of dissatisfied customers about the service of HEAD Phat Tien 5 is the
Phat Tien 2 Phat Tien 3 Phat Tien 4 Phat Tien 5 Phat Tien 6
Service Customer's Satisfaction of HEAD Phat Tien 5
Service Customer's Satisfaction of the Company
Customer satisfaction is crucial for service performance, and addressing complaints effectively can enhance overall service quality It is important to ensure that all feedback is taken seriously to improve the customer experience.
Phat Tien 5 will affect the most significant on the whole company’s service performance
In summary, the low customer satisfaction rate at HEAD Phat Tien 5 highlights a pressing need for the management to invest significantly in improvements As the motorcycle market grows increasingly competitive, customers are demanding higher standards in both product and service quality from retail stores It is crucial for Phat Tien 5 to identify the underlying issues and their causes in order to implement effective solutions that can enhance customer satisfaction.
POSSIBLE PROBLEMS
To address the identified symptoms, the author conducted in-depth interviews with the company's department managers, senior and junior technicians at HEAD Phat Tien 5, and a selection of service customers This approach aimed to uncover the underlying reasons for the symptoms from multiple viewpoints and to suggest potential solutions for future actions.
1.3.1 Unreliable service of repair and maintenance
Higher service quality leads to increased customer satisfaction, which in turn fosters customer loyalty Loyal customers not only tend to purchase additional services and share positive word-of-mouth but also contribute to improved service efficiency through their experience Customer expectations are shaped by prior experiences and communications regarding the product or service, establishing a benchmark for quality When the perceived performance meets or exceeds these expectations, it results in customer delight; conversely, falling short leads to dissatisfaction.
Mrs Ngoc – Manager of the customer service department, stated that:
Our department regularly receives customer feedback through surveys, revealing that approximately 60% of service complaints are related to the quality of repair and maintenance Customers have reported instances where motorcycles broke down shortly after service, or where fixing one issue led to another part becoming damaged This has led to dissatisfaction, as many believe that technicians are not adequately preparing or maintaining their motorcycles Additionally, repair and maintenance times tend to be lengthy, particularly during peak weekend hours.
Similarly, Mr Minh – Manager of the service department agreed:
Customers frequently express dissatisfaction with the quality of repair and maintenance services, often noting that technicians fail to thoroughly inquire about the symptoms of their motorcycles This issue is critical, as many complaints highlight serious cases that necessitate more careful attention and resolution.
Both senior and junior technicians of HEAD Phat Tien 5 – Mr Dung and Mr Quoc, had similar comments Mr Dung – a senior technician, told that:
Customer feedback highlights that the quality of repair and maintenance is a significant concern, often indicating that motorcycle defects are not fully resolved or that new issues arise after one is fixed This underscores the importance of quality as the company's top priority Additionally, many customers express frustration over long wait times for service.
Besides, Mr Quoc – a junior technician also added:
Customers often express dissatisfaction with the quality of motorcycle repairs, questioning why their bikes still exhibit symptoms after service In some instances, internal components require time to align and function properly Despite my attempts to clarify this to customers, my explanations may not have been sufficiently clear, leading to continued complaints Ultimately, the quality of repairs is crucial, as it directly impacts the store's reputation among customers.
Many customers express dissatisfaction with the lengthy waiting times, particularly on weekends when the volume of visitors increases This surge in clientele often leads to extended repair times, especially when additional defects are discovered during service, resulting in longer waits for subsequent customers.
“I think this is the most important problem because quality is the top priority of the company.”
Mr Tuan, a customer of HEAD Phat Tien 5, expressed a similar sentiment regarding the latest updates and services offered.
The repair quality was satisfactory; however, the issue persisted even after a thorough inspection before leaving the store The following day, I returned for a re-evaluation, and the staff promptly identified and resolved the defect completely.
Typically, the wait times are around 30 minutes, occasionally extending to about an hour While this duration may seem lengthy, it is manageable due to the high volume of customers, and I appreciate the comfort of waiting in an air-conditioned room.
Mrs Lien – another service customer of HEAD Phat Tien 5 added:
“I think the quality is good Mostly I change lubricant and repair some small parts because my motorcycle is rarely broken.”
Bowers and Swan (24) emphasized that the tangible aspects of healthcare services, such as physical settings, ambiance, layout, facilities, and infrastructure, significantly influence the overall perception of service quality Additionally, Thai (25) highlighted that investing in high-quality physical infrastructure can substantially improve customer satisfaction by delivering excellent service outcomes.
Mrs Ngoc – Manager of the customer service department, commented that:
The infrastructure, including the waiting room, lacks spaciousness and comfort, with issues such as malfunctioning air conditioning, a coffee maker, and hygiene concerns in both the waiting area and restrooms.
“Regarding limited service facilities and area, I think because the store develops so fast that the investment may not have adapted to fulfill the demand.”
Mr Minh – Manager of the service department also confirmed that “a few customers complain about the facilities and infrastructures of the store.”
Mr Dung – a senior technician, added that:
“Quantity of motorcycle lift is limited compared to the number of customers, especially on the weekends, which makes it harder to repair for all customers at the same time.”
Besides, Mrs Lien – a service customer shared that:
“The facilities are good The waiting room is clean and fresh, with an air conditioner The store offers some coffee However, I think the service area is not wide enough”
Mr Tuan, a customer, expressed his thoughts on the latest download options for thesis papers, emphasizing the importance of accessing updated resources.
The waiting room may be small, but it offers air conditioning and complimentary drinks for guests Additionally, the glass wall allows me to conveniently observe the repair process.
Phusavat and Kanchana identified six key criteria that influence customer satisfaction in service providers within the automotive technical repairs, retail, and transportation sectors: quality, costs, delivery, flexibility, customer focus, and know-how.
Besides, Roth S and Bửsener (26) figured out that satisfied customers are willing to pay more than the actual price, and vice versa
Mrs Ngoc – manager of the customer service department, shared that “price of spare parts and fees of repair and maintenance is fairly high”
Mr Minh – manager of the service department, also agreed that “several customers said that the fee of repair and maintenance and cost of spare parts is rather high.”
Mr Tuan – a service customer, opened up about his thinking that “The prices are a little higher than small repair workshops, but I think it’s reasonable.”
MAIN PROBLEM VALIDATION
The analysis of in-depth interviews and relevant literature identifies four key factors influencing customer satisfaction: unreliable repair and maintenance services, inadequate infrastructure and facilities, uncompetitive pricing, and insufficient employee support.
Analysis of secondary data from customer service reports reveals that the most significant source of complaints from service customers stems from unreliable repair and maintenance services Additionally, insights gathered from interviews support this finding.
Quality of service is a key criterion in Honda Vietnam's annual assessment, emphasizing its importance as a priority for the company, according to Mr Minh, the service department manager Mr Dung, a senior technician at HEAD, also highlighted that maintaining high quality is the company's top priority.
Phat Tien 5 Therefore, the author made a firm decision to discover further the issue of
“unreliable service of repair and maintenance” as the central problem of the thesis
After analyzing the internal reports and in-depth interviews, the author also did further research in literature papers for a better and more comprehensive understanding of these issues
Service quality is a fundamental importance to companies because customers always expect high-quality services as well as are willing to pay a premium for their values
Service quality is defined by Parasuraman, Zeithaml, and Berry as the extent to which a service meets customer needs, involving a comparison between customer expectations and their perceptions of actual service performance Additionally, Zeithaml, Bitner, and Gremler emphasize the importance of this comparison in assessing service quality.
“service quality as an overall judgment about the level of a service provider's performance”
Service quality is defined by Gronroos as the difference between consumer expectations and the actual service experienced According to Nadiri and Hussain, high service quality enhances customer satisfaction, encourages repeat business, and motivates customers to make recommendations.
Parasuraman et al developed the SERVQUAL model to assess service quality through five key dimensions: tangibility, which refers to the physical facilities, equipment, and appearance of personnel; reliability, the ability to deliver promised services dependably and accurately; responsiveness, the willingness to assist customers and provide timely service; assurance, which encompasses the courtesy and knowledge of employees that instill confidence and trust; and empathy, which involves offering personalized attention and care to customers.
Parasuraman et al (6) introduced the concept of "Reliability" in their SERVQUAL model, which consists of 22 items They defined service reliability as the "consistency of performance and dependability," emphasizing that a company must deliver services correctly on the first attempt and fulfill its promises This includes ensuring accurate billing, maintaining precise records, and completing services within the agreed timeframe.
Xifei and Jin (38) emphasize that service reliability is crucial for companies, necessitating accurate and timely performance while minimizing errors Enhancing service reliability is essential, as any shortcomings can result in negative customer feedback, detrimental word-of-mouth, and potential loss of clientele.
Dabholkar, Dayle, and Joseph (39) highlight that the service reliability construct comprises two key dimensions: "promises" and "doing it right." This focus on service reliability is crucial due to the intangible nature of services, which necessitates a stronger trust between customers and service providers Consequently, service reliability significantly influences services more than it does goods.
Yoo and Park (19) stated that satisfaction is “associated with the consumer response to a retailer’s offering and the difference between a product’s actual and expected performance”
Customer satisfaction arises from the customer's perception of the value received during a transaction or relationship This value is determined by comparing the perceived service quality to the expected value from interactions with competing vendors.
Customer satisfaction is defined as the desired outcome of service encounters, where customers evaluate whether their needs and expectations have been met (Orel and Kara, 17) Additionally, Krystallis and Chrysochou (18) also emphasize the importance of this concept in assessing service quality.
“a consequence of the customer's post-purchase evaluations of both tangible and intangible brand attributes and a key determinant of customer loyalty”
High customer dissatisfaction regarding service quality at Phat Tien 5 has been identified through in-depth interviews with managers and customers, as well as data from the customer service department The analysis suggests that five key issues may be contributing to this problem.
A recent survey conducted by the customer service department over the past six months reveals that the quality of repair and maintenance is the most significant factor, accounting for 66 percent of customer feedback Following this, the time taken for repairs and maintenance represents 10 percent, while the attitude of technicians and service division employees contributes 9 percent Additionally, infrastructure issues account for 5 percent, and pricing concerns make up the remaining 4 percent.
Figure 6: Reasons for dissatisfaction about service at HEAD Phat Tien 5
The author created an interview guide to thoroughly investigate the reasons behind the low customer satisfaction rate at HEAD Phat Tien 5 in recent years The objective is to gain insights and propose effective solutions Each interview is designed to last between 10 to 20 minutes, with a structured framework and specific questions tailored for each interviewee.
No Key sessions Objectives Time
1 Overall background To understand the current business situation of service activities at HEAD Phat Tien 5
2 Explore the causes of low customer satisfaction rate and
To explore the main reason for low customer satisfaction rate
April May June July August September Average 6 months
Figure 8: Reasons of dissatisfaction about service at HEAD Phat Tien 5
The quality of an employee's attitude significantly impacts overall performance, alongside factors such as pricing, time management, and infrastructure It is essential to consider these elements to enhance productivity and achieve organizational goals.
No Key sessions Objectives Time identify the main reason
3 Solutions To propose suitable solutions 5-10 minutes
✓ Managers of the related departments and HEAD Phat Tien 5s
1 Could you please introduction about yourself? (name, age, working experience)
2 According to your experience, what are the customer’s feedback about the service at
HEAD Phat Tien 5? What is the most critical feedback, and why?
3 From your point of view, what are the reasons for the problems? What is the most critical reason, and why?
4 Could you advise any suggestion to solve this problem according to your opinion?
5 From the above solutions, what is the most suitable solution, and why?
Interviewees: Customers of service division of HEAD Phat Tien 5
1 Could you please introduce yourself? (name, address)
2 Do you usually use service for your motorcycle at HEAD Phat Tien 5?
3 Are you satisfied with the service of HEAD Phat Tien 5? What is the biggest point you are not satisfied with?
According to the interview, Mrs Ngoc – manager of the customer service department, shared an overview of the customer survey her team collected:
POTENTIAL CAUSES
Osibanjo, Gberevbie, Adeniji, and Oludayo (34) emphasized that infrastructure and a consistent electricity supply, along with the availability of office equipment, are crucial for boosting organizational productivity Additionally, Marsh (35) noted that the pursuit of technology and improved productivity motivates equipment acquisitions, allowing for the measurement of processes and effectiveness to evaluate productivity gains.
Mrs Ngoc – manager of the customer service, stated:
“I think it is because of significant customer visits increase on the weekends while the limited-service facilities do not have enough capacity.”
“The store develops so fast that the investment may not have adapted to fulfill the demand.”
Mr Dung – a senior technician, also agreed and added that “The most critical reason, in my opinion, is limited motorcycle lifts in peak time.”
1.5.2 Limited capability of some technicians
Research by McKee, Simmers, and Licata indicates that individuals with greater confidence in their abilities are more likely to put in extra effort, persist through challenges, and set ambitious goals Furthermore, findings from Rabbanee, Burford, and Ramaseshan highlight that the high-quality performance of frontline employees plays a significant role in fostering customer loyalty.
Mrs Ngoc – manager of the customer service department, expressed her ideas:
In my view, the technical skills of technicians, particularly those who are junior, often fall short Additionally, the influx of customers during peak weekend hours can create significant pressure on technicians, heightening the likelihood of errors in repair and maintenance Ultimately, I believe that enhancing the technical skills of technicians is crucial, as it will lead to a more sustainable improvement in service quality over time.
Mr Minh – manager of the service department, told that:
Junior technicians often lack sufficient training from senior technicians and the Training department, leading to inadequate productivity As a result, tasks take longer to complete.
Mr Dung – a senior technician, shared his thinking that:
The prolonged waiting times can be attributed to the lack of adequate knowledge and skills among technicians, particularly those who are less experienced.
1.5.3 Lack of management and control
Effective supervision and positive relationships between supervisors and subordinates significantly enhance employee productivity and benefit the organization Conversely, poor supervision can negatively impact both the organization and its employees A successful supervisory relationship hinges on a capable supervisor who possesses not only technical expertise but also the ability to mentor subordinates effectively.
Managers should recognize that certain employees thrive on regular interaction with their colleagues and may struggle in remote work environments.
Certain employees need close supervision to maintain their quality and productivity Without the motivating influence of their colleagues, less capable employees may struggle to improve.
Mr Minh – manager of the service department, shared his concern as follows:
“There are insufficient and unregular management and control from the service department and the store’s managers.”
The cause-effect map will be updated on the list of causes of the central problem as follows
1.5.4 Not strictly following the company’s procedure
Utin and Yosepha (30) emphasized that strong employee discipline is crucial for organizations to sustain loyalty and quality among their workforce, as it reflects their performance levels Additionally, Razak, Sarpan, and Ramlan (31) noted that the direct influence of work discipline on employee performance is significantly greater than its indirect effects through motivation.
Mr Minh – manager of the service department, figured out that:
The final check step in the service procedure is often not executed with the necessary care and precision A key issue is that technicians frequently fail to adhere strictly to the company's established procedures, particularly during the chief technician's final check This step is crucial for ensuring the quality of repairs and maintenance before motorcycles are returned to customers, ultimately helping to reduce defect and complaint rates.
Mr Dung – a senior technician, shared his opinion:
The quality of repairs may be compromised due to a lack of thorough checks during the process and occasionally unclear communication with customers.
Figure 8: Process of repair and maintenance service
Source: Service Department The process of repair and maintenance service is a multiple-step process, including 15 steps in total with specific details as follows:
Step 1: Customer visits the HEAD store with the demand for motorcycle repair and maintenance
Step 2: The Vice-Lead of Technician welcomes customers and asks them for the symptoms of the problems in their motorcycle and collects some more details about the motorcycle, e.g., distance already traveled as well as customer's name and mobile phone number into his note
Step 3: The Vice-Lead of Technician's hands over the customer's motorcycle and the symptom notes for a technician to check and inform back the motorcycle status
Step 4: The Vice-Lech of Technician offers a quotation to the customer for his/her acceptance before proceeding with the repair or maintenance If no, the customer will refuse the service If yes, follow the next steps
Step 5: Service cashier creates a Repair Sheet and Warehouse-Export Sheet (if any) onto the PTS system, which is an internal system to manage service activities
Step 6 and 7: The service cashier prints the Repair Sheet and Warehouse-Export Sheet (if any) from the PTS system, then transfer these sheets to a technician
Step 8: The technician exports the spare parts in the Warehouse-Export Sheet (if any) out of the Spare part warehouse tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Step 9: The warehouse employee immediately inputs the data on the Warehouse-Export Sheet (if any) on to DMS system, which is an internal system to manage spare parts warehouse
In Steps 10, 11, and 12, the technician carries out the necessary repair and maintenance Should any additional spare parts or service fees be required, the technician will provide the customer with a revised quotation If no extra costs are involved, the technician will proceed with the remaining repair and maintenance tasks If additional costs are necessary, the process will revert to Step 5.
CAUSE VALIDATION AND SOLUTIONS
CAUSE VALIDATION
In-depth interviews and literature reviews reveal four key factors contributing to the unreliable service of repair and maintenance: (1) inadequate infrastructure and facilities, (2) insufficient technician capabilities, (3) poor management and oversight from the company, and (4) technicians' failure to adhere to established service procedures This raises the question of which of these factors is the most critical.
Firstly, infrastructures and facilities play a crucial role in all services’ performance
In motorcycle service, a spacious area equipped with sufficient lifts and maintenance tools is essential for technicians to perform their jobs efficiently However, these tools are merely supportive; the true driving force behind customer satisfaction lies with the technicians themselves It is the expertise and skills of the technicians that transform facilities into effective services, addressing customer demands for repair and maintenance Thus, the core issue is not the infrastructure but the technicians' ability to deliver quality service.
The limited capability of technicians significantly impacts service quality, as acknowledged by Mrs Ngoc, Mr Minh, and Mr Dung They note that some technicians, particularly juniors, lack essential professional knowledge and skills However, this issue can be addressed through proper supervision, training, and support from senior technicians and the service manager, indicating that it is not the primary cause of the central problem.
A lack of effective management and oversight can significantly impact employee productivity, as highlighted by Lee and Kusumah (36) Establishing strong supervisory relationships is crucial for enhancing performance Regular showroom visits to assess conditions and provide actionable feedback are essential activities that can improve technicians' effectiveness.
Still, outside factors can only be effective in the first period This cannot maintain durable performance in the long term but the technicians themselves Additionally, Utin and
Yosepha (30) show the importance of discipline to maintain the employee’s performance
The primary issue arises from the failure to adhere to the company's procedures To enhance technicians' experiences, the company should provide management support and allow them to learn from their mistakes over time.
All four possible causes of the central problem are updated in the following cause-effect map
Figure 9: The final cause-effect map
Limited capability of technicians Low customer satisfaction about Service at HEAD Phat Tien 5
Lack of management and control
Not strictly following the company’s procedure
Decreased ranking with Honda Vietnam
The article discusses the challenges of unreliable repair and maintenance services, emphasizing the need for dependable solutions It highlights the importance of accessing the latest resources and tools for effective service delivery Additionally, it mentions the significance of maintaining communication through platforms like Gmail for better coordination and support.
ALTERNATIVE SOLUTIONS
The primary issue identified is that technicians at HEAD Phat Tien 5 do not adhere strictly to the company's procedures This article will focus on proposing solutions to address this problem Several alternative strategies are suggested to enhance service reliability at the establishment.
2.2.1 The first alternative solution: Conducting a “Quality First” campaign
Quality improvement should be embraced as both a philosophy and a way of life, as emphasized by Mehra and Ranganathan Total Quality Management (TQM) embodies this concept, requiring all employees across an organization to contribute to the enhancement of business activities Pattanayak, Koilakuntla, and Punyatoya further describe TQM as a systems approach to management focused on increasing customer value through the design and continuous improvement of organizational processes and systems.
Pattanayak et al (41) emphasize that the significance of quality consciousness has expanded the application of Total Quality Management (TQM) beyond manufacturing to the service sector They identify eight key dimensions of TQM: leadership, benchmarking, information and analysis systems, service culture, servicescape, technology-based banking services, customer focus, and human resource focus.
To ensure technicians adhere to company procedures sustainably, it is essential to foster a deep understanding of the critical importance of service reliability This understanding benefits not only the customer but also the company's business and the technicians themselves.
Mr Minh – Manager of the Service department suggested that:
Our service department aims to enhance compliance with service procedures through various strategies, including establishing specific KPIs for each technician, conducting more frequent assessments of the store's current situation, and strengthening collaboration with the customer service department and the store.
To enhance tracking and improve service quality, the service department must collaborate with the customer service team to gather valuable customer feedback Additionally, partnering with the software department is essential for addressing technical aspects effectively.
Mrs Ngoc – Manager of Customer Service department added that:
Addressing quality issues necessitates collaboration between relevant departments and technicians The customer service team will prioritize gathering detailed information about repair and maintenance quality, enabling service managers and technicians to identify and resolve problems more accurately Additionally, the customer service department will increase communication with the service team to expedite repairs for customers facing issues.
Consolidating all the above information, the author suggests a campaign called the
“Quality First” campaign, which includes many bold activities as follows:
The service department is enhancing the current service procedure by emphasizing the critical final check performed by the lead technician This involves redefining tasks with stricter requirements for each technical issue All motorcycles must undergo a quality approval process after repairs and maintenance before being returned to customers.
To enhance accountability and fairness, the results of technicians and lead technicians should be documented with a designated person-in-charge for each step, promoting a sense of responsibility and equitable assessment By integrating these records with the existing systems of the service and customer service departments, the software department can streamline data management and facilitate informed decision-making.
The customer service department conducts weekly surveys to gather both complaints and compliments from customers Monthly, this data is analyzed by the service department to assess improvements in customer satisfaction and to fairly evaluate the performance of technicians.
The service department should establish a new KPIs framework that prioritizes the quality of repair and maintenance, guiding technicians to enhance both service quantity and quality Additionally, regular assessments and inspections should be conducted every two weeks based on specific criteria Feedback on inspection results must be provided to the store manager and technicians, enabling them to identify areas for improvement and track their progress effectively.
Financial incentives are essential for motivating employees to excel in their roles Incorporating these benefits into monthly salaries or quarterly bonuses can enhance the work ethic of skilled technicians and inspire others to improve their performance.
The synchronized CRM system between the customer service and service departments provides valuable data for in-depth analysis of customer complaints and technician performance.
Monthly reports on customer feedback from the customer service department and technician performance from the service department will provide valuable insights into current service reliability for both managers and technicians.
✓ Performance is fairly monitored in specific details for each technician will increase their responsibility and figure out which are their advantages and disadvantages for further improvement
✓ Regular observation and inspection from the managers combined with fair financial benefits will sustainably develop a culture of positive competition for better performance between the technicians
The implementation of solutions relies on the internal resources of the technology system and human capital, necessitating costs for developing new functions in CRM software by the company's software team Additionally, financial incentives are essential to motivate the technicians involved in this process.
1 Develop a new function in CRM software to monitor service result after repair and maintenance
2 Training employees for using a new function Free
3 Monthly rewards for top three technicians for 12 months 36,000,000
4 Quarterly rewards for top three technicians for 4 quarters 24,000,000
2.2.2 The second alternative solution: Internal training and annual technical competition
SOLUTION SELECTION
At HEAD Phat Tien 5, enhancing service reliability is crucial for maximizing customer satisfaction To reach this goal, management must address the primary reasons for not adhering to company procedures After evaluating various solutions based on benefits, costs, feasibility, and resource alignment, the author recommends prioritizing the implementation of the "Quality First" campaign for its significant advantages.
The new CRM system feature enables detailed monitoring of service data, providing a reliable source for in-depth analysis of customer complaints and technician performance, surpassing the insights typically gained from training and competitive activities.
The collaboration among various service departments, customer service, and software systems is essential for generating monthly reports that provide meaningful conclusions and insights into technician performance and the progress of customer complaint resolution This data significantly influences both technicians and management, enhancing technician accountability and helping to identify areas for further improvement.
Implementing a new function for CRM software is a cost-effective solution that optimizes human resources Given the long-term usability of this software, the investment is justified Additionally, the existing coding team can collaborate efficiently with other departments to address their needs during both the planning and execution stages.
ACTION PLAN IN ORGANIZATION
The software development process consists of four key phases: initial planning, trial application, official implementation, and evaluation In the first phase, targets and general plans are established, outlining a specific timeline, costs, and resources The second phase involves testing the new software functions to ensure quality and address any errors The third phase focuses on the official rollout of the new features, accompanied by regular assessments from management Finally, the last phase evaluates customer satisfaction and the performance improvements of technicians.
Service Reliability - the Key to Improve Customer Satisfaction at HEAD Phat Tien 5 31
Jun Jul Aug Sep Oct-
- Establish a list of purpose priorities with a specific target to achieve after the project
- Define the target for other activities
- Discuss to develop a detailed project plan between related departments including activities, timeline, costs, and resources required
- Estimate possible risks and suitable solutions
Service department, Customer service department, Software department
- Coding a new function of service tracking to the current CRM software
- Develop new function in CRM software
Service Reliability - the Key to Improve Customer Satisfaction at HEAD Phat Tien 5 32
Jun Jul Aug Sep Oct-
- Develop detailed criteria to track and evaluate the technician progress
- Connect the new function to the current CRM software
- Training to employees and technicians
- Collect feedback from managers, employees and technicians
- Improve and fix the errors if any
Service department, Customer service department, Software department
Service Reliability - the Key to Improve Customer Satisfaction at HEAD Phat Tien 5 33
Jun Jul Aug Sep Oct-
- Apply in daily tasks of technicians and customer service employees
- Frequently assessment at the store
- Receive feedback to improve the software function
- Put the plan into daily practice
Service department, Customer service department, Software department
- Collect and receive data from customer feedback
- Analysis and report to the Service department
- Analyze the technicians improvement results
Service Reliability - the Key to Improve Customer Satisfaction at HEAD Phat Tien 5 34
Jun Jul Aug Sep Oct-
- Identify which skills each technician needs to enhance their performance
- Finalize the technicians’ improvement results
- Suggestions for the next period
- Conclusion and direct for future actions
CONCLUSION
The motorcycle market has become increasingly competitive, prompting manufacturers and their exclusive distribution partners to enhance product and service quality In this landscape, customer satisfaction has taken precedence over merely expanding market share As the market leader in Vietnam, Honda prioritizes the Customer Satisfaction Index to assess the performance of its distributor partners annually With over 20 years of experience, Phat Tien Co., Ltd has emerged as a leading motorcycle dealer in the region.
Honda Vietnam in Ho Chi Minh city and the neighboring regions
Phat Tien has achieved high customer satisfaction by consistently exceeding expectations; however, this success is not reflected across all its stores Notably, HEAD Phat Tien 5, one of the largest locations, has a comparatively high customer dissatisfaction rate, particularly regarding service activities This issue is critical for the company, as it can negatively impact financial performance, rankings with Honda Vietnam, and lead to adverse word-of-mouth that may harm the company's reputation.
The author conducted in-depth interviews and analyzed secondary data to uncover four key issues: unreliable repair and maintenance services, inadequate infrastructure and facilities, uncompetitive pricing, and lack of employee support Among these, the most significant challenge identified is the unreliability of service.
The author identified four key factors contributing to the main issue: inadequate infrastructure and facilities, insufficient technician capabilities, a lack of management oversight, and non-compliance with company procedures by technicians.
Among them, not strictly following the company’s procedure is the main reason
The author proposes two alternative solutions for implementing a "Quality First" campaign, alongside internal training and an annual technical competition After evaluating various factors such as benefits, costs, feasibility, and available company resources, a comprehensive action plan is developed to recommend the "Quality First" campaign to the company's management board for practical implementation.
This paper aims to provide valuable insights for the company to enhance service quality, improve financial performance sustainably, and ultimately maximize customer satisfaction in repair and maintenance services.
SUPPORTING INFORMATION
INTERVIEW GUIDE
Research objectives: To have an in-depth exploration and understand the reasons that HEAD
Phat Tien 5 has a low customer satisfaction rate in the recent year and propose solutions to solve it
Duration: 10-20 minutes for each interviewee
No Key sessions Objectives Time
1 Overall background To understand the current business situation of service activities at HEAD Phat Tien 5
2 Explore the causes of low customer satisfaction rate and identify the main reason
To explore the main reason for low customer satisfaction rate
3 Solutions To propose suitable solutions 5-10 minutes
✓ Managers of the related departments and HEAD Phat Tien 5s
1 Could you please introduction about yourself? (name, age, working experience)
2 According to your experience, what are the customer’s feedback about the service at
HEAD Phat Tien 5? What is the most important feedback, and why?
3 From your point of view, what are the reasons for the problems? What is the most critical reason, and why?
4 Could you advise any suggestion to solve this problem according to your opinion?
5 From the above solutions, what is the most suitable solution, and why?
Interviewees: Customers of service division of HEAD Phat Tien 5
1 Could you please introduce yourself? (name, address)
2 Do you usually use service for your motorcycle at HEAD Phat Tien 5?
Are you satisfied with the service at HEAD Phat Tien 5? What is the main aspect that you find unsatisfactory?
4 Do you have any suggestions for the store for improvement?
5 Will you continue to use service at HEAD Phat Tien 5?
QUALITATIVE RESEARCH
✓ Interviewee: Mrs Le Minh Ngoc
Q1: Good morning Could you introduce something about yourself and the position you are working in this company?
Mrs Ngoc: My name is Le Minh Ngoc I have been a member of Phat Tien since 2014
Currently, I take care of the Customer service department of the company
Customer feedback about the service at Phat Tien 5 highlights a strong emphasis on quality and attentiveness Many patrons appreciate the friendly staff and prompt service, which significantly enhances their dining experience The most important feedback revolves around the consistency of service and the quality of food, as these factors directly influence customer satisfaction and loyalty Positive reviews often mention the welcoming atmosphere, while constructive criticism focuses on areas for improvement, such as wait times during peak hours Overall, understanding and addressing this feedback is crucial for maintaining high standards and fostering customer loyalty at Phat Tien 5.
Mrs Ngoc highlighted that our department receives significant customer feedback through surveys, revealing that approximately 60 percent of service complaints are related to the quality of repair and maintenance Notably, some customers have reported that their motorcycles experienced issues again shortly after service.
Customers often perceive inadequate motorcycle maintenance due to subsequent damage after service, leading to dissatisfaction with technicians' preparation Additionally, poor customer service, characterized by unfriendly and unenthusiastic staff, exacerbates the issue Repair and maintenance times are notably lengthy, particularly during busy weekends Furthermore, the costs associated with spare parts and service fees are considered high Lastly, the infrastructure, including a cramped waiting room and issues with amenities like air conditioning and hygiene, contributes to an overall negative experience.
The quality of repair and maintenance stands out as the most significant issue among customer complaints, as it not only represents the largest percentage of concerns but also reflects the primary worry of customers regarding service quality.
Q3: From your point of view, what are the reasons for the above problems? What is the most critical reason, and why?
Mrs Ngoc identified several factors affecting the quality of repair and maintenance services based on customer survey results She noted that the technical skills of technicians, particularly those who are less experienced, often fall short Additionally, the high volume of customer visits during peak weekend hours can create pressure on technicians, increasing the likelihood of defects Ultimately, she believes that enhancing the technical skills of technicians is the most crucial factor for improving service quality sustainably in the long run.
Regarding the time of repair and maintenance, I think it is because of significant customer visits increase on the weekends while the limited-service facilities do not have enough capacity
Regarding the technician’s attitude, I am not sure about the actual situation at the store, so I think you can ask the service department and the store for practical reasons
Regarding the high price, it depends on the company’s policy, so I think it requires more time to check and improve
Regarding limited service facilities and areas, I think because the store develops so fast that the investment may not have adapted to fulfill the demand
Q4 In your opinion, could you advise any suggestion to solve the main problem of service quality?
Mrs Ngoc emphasizes that addressing quality issues necessitates significant collaboration between all parties involved, including relevant departments and technicians The customer service team will conduct thorough surveys to gather detailed insights into the quality of repair and maintenance, enabling the service department manager and technicians to identify and resolve problems more accurately.
To enhance customer satisfaction, the customer service department will improve communication with the service department to expedite repairs Establishing a dedicated section in the internal systems for service issues will increase efficiency Additionally, senior technicians will provide closer training and support to junior staff To manage peak visit times, the service department may implement a promotional policy on repair and maintenance fees, encouraging customers to schedule visits during weekday evenings.
Q5 From the above solutions, what is the most suitable solution, and why?
Mrs Ngoc suggests enhancing the customer survey by incorporating more specific details and shortening the response time This approach will enable the store to address service issues promptly and effectively.
✓ Interviewee: Mr Nguyen Quang Minh
Q1: Good morning Could you introduce something about yourself and the position you are working in this company?
Mr Minh: My name is Nguyen Quang Minh, manager of the service department I have been working at Phat Tien for about 8 years
Customer feedback about the service at Phat Tien 5 highlights a strong emphasis on the quality of service and staff responsiveness Many customers appreciate the attentive and friendly staff, which significantly enhances their overall experience The most important feedback revolves around the consistency of service quality, as it directly impacts customer satisfaction and loyalty Additionally, suggestions for improvement, such as faster service during peak hours, are crucial for maintaining a competitive edge in the market Overall, understanding and addressing customer feedback is essential for Phat Tien 5 to continue thriving.
Customers frequently express dissatisfaction with the quality of repair and maintenance services, citing that technicians often fail to thoroughly inquire about motorcycle symptoms Long wait times, particularly on weekends, are a common issue, along with a perceived lack of enthusiasm from technicians in providing support Additionally, many customers find the repair and maintenance fees, as well as spare parts costs, to be relatively high Some have also raised concerns regarding the store's facilities and infrastructure.
The quality of repair and maintenance is a critical issue, as numerous customers have expressed their dissatisfaction In some instances, the problems are severe, necessitating careful resolution Given that service quality is a key criterion in Honda Vietnam's annual evaluations, it is essential for us to prioritize and address these concerns diligently.
Q3: From your point of view, what are the reasons for the above problems? What is the most critical reason, and why?
Mr Minh emphasizes that the quality of repair and maintenance is affected by several factors: inadequate implementation of the final check in the service procedure, insufficient training for junior technicians from senior staff and the Training department, and irregular management and oversight from both the service department and store managers.
Repair and maintenance times are extended due to limited service area expansion in neighboring urban locations and a restricted number of motorcycle lifts Additionally, technician productivity is insufficient, resulting in longer task completion times.
Many technicians, primarily from technical backgrounds, often lack the gentle and professional communication skills necessary for effective customer interaction Additionally, they are not adequately trained in essential soft skills such as communication and problem-solving As a result, their attitudes can sometimes lead to misunderstandings with customers.
The service department has not consistently monitored market prices, resulting in high costs that do not align with competitive rates for repair and maintenance Additionally, the promotional campaigns offered are less appealing than those of competitors during certain times of the year.
QUALITATIVE RESEARCH FINDINGS
✓ Managers of the related departments and HEAD Phat Tien 5 (1A) Mrs Ngoc
✓ Technicians (2A) Mr Dung (2B) Mr Quoc
✓ Service customers (3A) Mr Tuan (3B) Mrs Lien
1 Customer’s feedback about the service at
1 Quality of repair and maintenance
3 Time of repair and maintenance
1 Quality of repair and maintenance
2 Long waiting time, especially at the weekends
3 The attitude of the technicians
1 Quality of repair and maintenance
1 Quality of repair and maintenance
2 The quality of repair is generally
OK Just one time needed for double- checking
3 Quality of repair is OK
Service Reliability - the Key to Improve Customer Satisfaction at HEAD Phat Tien 5 46
3 Prices are a little higher than a small shop but acceptable
Quality of repair and maintenance
Quality of repair and maintenance
Quality of repair and maintenance
Quality of repair and maintenance
Quality of repair Waiting time
3 The reasons for the problems
1 Insufficient technical skills of the technicians
2 Too many customers visit at peak times
1 Technicians do not strictly follow the company’s procedure
2 Lack of training for junior technicians
3 Insufficient and unregular management and control
1 Missing check in the repair process
2 Unclear explanation to customers leading to misunderstanding
2 A limited quantity of motorcycle lifts
Service Reliability - the Key to Improve Customer Satisfaction at HEAD Phat Tien 5 47
4 Limited area and hard to expand neighboring urban premises
5 A limited quantity of motorcycle lifts
7 Lack of technicians’ soft skills
8 Not tracking the market price
9 Uncompetitive promotion campaigns knowledge and skills
4 A limited quantity of motorcycle lifts
Insufficient technical skills of the technicians
1 Technicians do not strictly follow the company’s procedure
A limited quantity of motorcycle lifts
Insufficient technical skills of the technicians
Service Reliability - the Key to Improve Customer Satisfaction at HEAD Phat Tien 5 48
5 Solution alternatives to solve the problems
1 Improve the survey’s results with specific details
2 Enhance communication with related departments
2 Utilize infrastructures of HAUS store
3 Internal training for practical knowledge and skills
2 Enhance technicians’ knowledge and skills
6 What is the most suitable solution
Improve the survey’s results with specific details
2 Utilize infrastructures of HAUS store
Help technicians to repair more precisely
Minimize the waiting time by priority section for customers only changing the lubricant
Service Reliability - the Key to Improve Customer Satisfaction at HEAD Phat Tien 5 49
7 Will the customer continue to use service at
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