INTRODUCTION
Overview
This chapter provides a comprehensive overview of the research, including the study's background, problem statement, purpose, objectives, research questions, significance, and the overall structure of the thesis.
Customer satisfaction is crucial for companies aiming to enhance market quality While businesses set specific profitability targets and develop strategic plans, they share a common focus: the customer To achieve success, companies must prioritize their customers in all aspects of their operations.
This means determining customers’ needs, responding to their requirements and maintaining customer satisfaction by assuring quality in company’s operations
Customer satisfaction plays a crucial role in business success, as happy customers tend to share their positive experiences, leading to increased word-of-mouth referrals This influx of new customers ultimately boosts sales and enhances profitability for companies.
The apartment industry in Vietnam recently formed and flourished in recent years
The apartment industry has significantly driven urbanization in Vietnam, but the market is currently facing a downturn due to the broader economic climate Investors, including Hoang Anh Gia Lai, are reducing prices by up to 40% on several new apartment projects Similar declines are observed in other developments, such as the Discovery Complex in Hanoi and the Dai Thanh project.
In a highly competitive market, investors face intense rivalry not only in apartment products but also across various commodities When consumers choose to purchase or invest in real estate, they weigh multiple factors that influence their decisions and fulfill their lifestyle needs To develop a successful business strategy, apartment investors must grasp these critical factors.
According to the VNR survey data from the property report (2009-2010), the most significant factor influencing customer satisfaction is the project's location, accounting for 71.2% of the decision-making process Following this, the design of the project also plays a crucial role Additionally, potential buyers heavily rely on information flow regarding apartment options, where word of mouth significantly impacts their choices To boost sales, investors must comprehend the factors that affect customer satisfaction and enhance positive communication strategies to attract new customers.
The Vietnamese economy is developing in accordance with Party economic policy
The population’s incomes was increased dramatically, demand for housing along with a growing Current, source of housing supply from many Vietnam and foreign real estate companies are quite diverse
As Vietnam integrates into the global economy, perceptions of the apartment industry have evolved, reflecting economic growth Today, owning an apartment is a source of pride, particularly among young people, due to their modern and luxurious interior designs reminiscent of 4 or 5-star hotels Each apartment complex is strategically located near essential public services, including supermarkets, Asian and European restaurants, swimming pools, gyms, postal services, banking, kindergartens, and corporate offices, creating a miniature city where residents can conveniently access amenities without traveling far.
In order to meet this demand, many construction companies have invested in this sector Compared to just two years ago, this year the apartment industry has diversified profusely
In today's competitive landscape, customer satisfaction is crucial for businesses High-quality products not only distinguish brands but also foster consumer loyalty, ultimately contributing to a larger market share.
In Vietnam, there is a lack of empirical studies on customer satisfaction within the apartment industry Despite increased competition and a growing real estate supply over the past decade, there is insufficient evidence to support claims of customer satisfaction with the quality provided by firms in this sector Understanding the factors that influence customer satisfaction is essential for management to develop effective marketing strategies.
Many customers invest significant amounts in apartments, yet often face poor build quality and inadequate services Issues such as cracked walls and rusted sanitary ware can arise within just two years of purchase Despite detailed contracts outlining construction materials and structural specifications, investors frequently make unauthorized changes without informing buyers Additionally, promised amenities like entertainment areas and parking are often not delivered as part of the building's utilities.
It is very necessary to research the service or product quality because of affecting customer satisfaction, creating belief in investing and residing in apartment
This study aims to analyze the factors influencing overall customer satisfaction and the intention to engage in word-of-mouth activities within the apartment industry in Vietnam.
The following are the specific objectives of this study:
- To examine the determinants of customer satisfaction in the apartment industry in Vietnam
- To identify the relationship between customer satisfaction and word of mouth communication
1 What are the determinants of customer satisfaction in apartment industry in Vietnam?
2 Is there relationship between the customer satisfaction and word of mouth tot nghiep do wn load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg communication in the apartment industry in Vietnam?
This study is significant in evaluating customer satisfaction in the apartment industry:
First, it will provide the basis for making decisions about improvements in current housing stock as well as the design and development of future housing
Second, it will encourage housing managers, designers, and policy makers to be more accountable
Third, to policy makers the finds and results of this study will provide insights and guidance to help monitor the operations of the apartment industry in Vietnam
Forth, will show the impact on physical and psychological health of customers who reside in apartments
The study is organized into five chapters (Figure 1.1)
Chapter one is the introductory chapter It includes the background, problem statement, purpose of the study, objectives, research questions, significance, and structure of thesis
Chapter two reviews relevant literature, concepts and theoretical framework: overall customer satisfaction, factors influence on customer satisfaction, research model,
The literature review for the thesis includes the latest updates and insights, focusing on the hypothesis and summarizing each chapter effectively For further details, you can download the full document at the provided email address.
Chapter three outlines the methodology, emphasizing research perspectives and data collection It identifies the hypotheses and provides a detailed explanation of the main constructs and concepts, along with their indicators and measurements.
Chapter four presents the data analysis and resulting and findings
Chapter five summarizes the conclusions and implications of the study, highlighting key findings and their significance.
Problem statement
The Vietnamese economy is developing in accordance with Party economic policy
The population’s incomes was increased dramatically, demand for housing along with a growing Current, source of housing supply from many Vietnam and foreign real estate companies are quite diverse
As Vietnam integrates into the global economy, perceptions of the apartment industry have evolved, reflecting economic growth Today, owning an apartment is a source of pride, particularly among young people, due to their modern and luxurious interior designs reminiscent of 4 or 5-star hotels Each apartment complex is strategically located near essential public services, including supermarkets, Asian and European restaurants, swimming pools, gyms, postal services, banking, kindergartens, and corporate offices, creating a self-sufficient community where residents can access amenities conveniently.
In order to meet this demand, many construction companies have invested in this sector Compared to just two years ago, this year the apartment industry has diversified profusely
In today's competitive landscape, customer satisfaction is crucial for businesses High-quality products not only distinguish brands but also foster consumer loyalty, ultimately contributing to a larger market share.
In Vietnam, there is a lack of empirical studies on customer satisfaction within the apartment industry Despite increased competition and a growing real estate supply over the past decade, there is insufficient evidence to support claims of customer satisfaction with the quality provided by firms in this sector To enhance management's ability to develop effective marketing strategies, it is essential to better understand the factors influencing customer satisfaction in the apartment industry.
Purpose of the study
Many customers invest significant amounts in apartments, yet often face poor build quality and inadequate services Issues such as cracked walls and rusted sanitary ware can arise within just two years of purchase Despite detailed contracts outlining construction materials and structural specifications, investors frequently make unauthorized changes during the building process Additionally, promised amenities like entertainment areas and parking are often not delivered, leaving buyers disappointed.
It is very necessary to research the service or product quality because of affecting customer satisfaction, creating belief in investing and residing in apartment
This study aims to analyze the factors influencing overall customer satisfaction and the intention to engage in word-of-mouth activity within the apartment industry in Vietnam.
Objectives of the study
The following are the specific objectives of this study:
- To examine the determinants of customer satisfaction in the apartment industry in Vietnam
- To identify the relationship between customer satisfaction and word of mouth communication.
Research question
1 What are the determinants of customer satisfaction in apartment industry in Vietnam?
2 Is there relationship between the customer satisfaction and word of mouth tot nghiep do wn load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg communication in the apartment industry in Vietnam?
Significance of the study
This study is significant in evaluating customer satisfaction in the apartment industry:
First, it will provide the basis for making decisions about improvements in current housing stock as well as the design and development of future housing
Second, it will encourage housing managers, designers, and policy makers to be more accountable
Third, to policy makers the finds and results of this study will provide insights and guidance to help monitor the operations of the apartment industry in Vietnam
Forth, will show the impact on physical and psychological health of customers who reside in apartments.
Structure of thesis
The study is organized into five chapters (Figure 1.1)
Chapter one is the introductory chapter It includes the background, problem statement, purpose of the study, objectives, research questions, significance, and structure of thesis
Chapter two reviews relevant literature, concepts and theoretical framework: overall customer satisfaction, factors influence on customer satisfaction, research model,
The literature review for the thesis includes the latest updates and insights, focusing on the hypothesis and summarizing each chapter effectively For further details, you can download the full thesis document.
Chapter three outlines the methodology, emphasizing research perspectives and data collection It identifies the hypotheses and provides a detailed explanation of the main constructs and concepts, along with their indicators and measurements.
Chapter four presents the data analysis and resulting and findings
Chapter five summarizes the conclusions and implications of the study, highlighting key findings and their significance.
LITERATURE REVIEW
Overview
This chapter offers a comprehensive review of relevant literature, building on the study's background, research objectives, and questions introduced earlier It discusses key concepts and the theoretical framework, focusing on overall customer satisfaction, its determinants, the research model, and hypotheses, concluding with a summary of the chapter.
Overall customer satisfaction
Customer satisfaction is crucial for business strategies in today's competitive market It is defined as the feeling of pleasure or disappointment that arises when a product's performance is compared to a customer's expectations Understanding and enhancing customer satisfaction is essential for achieving business goals.
Customer satisfaction is a psychological concept that reflects the sense of well-being and pleasure derived from receiving what one anticipates from a desirable product or service It can be described as an attitude adjustment that occurs after a purchase or a series of interactions with consumer products.
Customer satisfaction is defined as a consumer's evaluation and emotional response following their experience with a product or service (Youjae Yi, 1990; Lovelock & Wirtz, 2007) It is often viewed as the outcome of meeting consumer needs and desires, with satisfaction arising when expectations are met (Besterfield, 1994) Gyasi and Azumah (2009) further describe satisfaction as the ongoing subjective assessment of product or service quality in relation to consumer expectations over time.
Satisfaction is a complex concept that varies in definition across different contexts and measurements As noted by Oliver (1997), it is a universally recognized yet intricately nuanced feeling.
[satisfaction] is until asked to give a definition Then it seems, nobody knows”
Customer satisfaction is a multi-dimensional concept that encompasses various aspects of experiences with a product or service provider It can be influenced by several factors, including product or service quality, reliability, timeliness, and the friendliness of service providers As such, satisfaction can be linked to different objects of interest depending on the specific goals one aims to achieve.
Hence, there are a lot of definitions of customer satisfaction as well as a lot of controversies about it Providing a precise definition of satisfaction is difficult
Customer satisfaction can be defined as the response of consumers to the fulfillment of their needs (Oliver 1997, 13) This definition highlights that satisfaction arises from the consumption of products or services that meet or exceed consumer expectations, encompassing varying levels of satisfaction—whether it is at, above, or below the desired level Therefore, for the purposes of this research, customer satisfaction in the apartment industry is defined accordingly.
- The expectations of customers resident in apartments compared with reality of their experience
- Benefits received when living in that apartment
Customer satisfaction is influenced by various factors that must be analyzed for accurate measurement It reflects an overall attitude towards products and is shaped by the emotional response to the disparity between customer expectations and actual experiences (Hansemark and Albinsson, 2004) Satisfaction arises from the comparison of anticipated outcomes with the reality of a product or service When performance falls short of expectations, customers feel disappointed; conversely, if performance aligns with their expectations, they experience satisfaction.
If the performance exceeds expectations, the customer is highly delighted (Kotler and Keller, 2006)
In the apartment industry, customer satisfaction determinants remain under-researched Sale (2008) found that building features, including the number of bedrooms, kitchen size and location, and housing unit quality, significantly impact customer satisfaction Additionally, satisfaction with neighborhood amenities, such as schools, healthcare, shopping, and community centers, plays a crucial role in overall customer contentment.
A study conducted in Yemen assessed residents' satisfaction with their housing and environment across three housing schemes The researchers identified key variables influencing housing satisfaction, including the housing environment—comprising the dwelling unit, neighborhood, and community services—and housing quality, which encompasses the interior, exterior, and environmental aspects of the dwelling Interviews revealed that neighborhood satisfaction was the most significant concern for residents, with privacy being a crucial factor linked to their overall satisfaction, reflecting the cultural values of Yemeni society.
In her 2000 study on housing satisfaction in Bandar Bare Bang, Malaysia, Oh found that residents expressed contentment with the space and affordability of their homes However, they were dissatisfied with the kitchen size, plumbing, and the availability of public facilities, including recreational areas, playgrounds, and transportation services like taxis and buses.
According to Tsembelis et al (2003), housing satisfaction is significantly affected by various factors, including the characteristics of the surrounding neighborhood, social interaction patterns, the effectiveness of management practices related to repairs, tenant involvement, and the overall quality of the home.
Phillips et al (2005) investigated how residential satisfaction, encompassing contentment with the dwelling unit, estate, and district, mediates the impact of dwelling conditions—both interior and exterior environments—on psychological well-being The study identified various dwelling condition factors that influence the satisfaction and psychological well-being of older residents.
The research conducted by Tu and Lin (2008) explored how residents of Taipei City evaluate the quality of their residential environment in high-density, mixed-use areas Their principal component analysis uncovered a multidimensional evaluative structure, comprising six key scales: urban planning and design, security and social relationships, transportation and commercial services, residential atmosphere, environmental health, and facility management, which are further supported by eleven underlying factors.
Amole (2009) examined the features of residence halls in Nigeria that contribute to high residential satisfaction among students The study identified key factors influencing satisfaction, including the social qualities of the residences, particularly social densities, as well as the availability of kitchenette, bathroom, and storage facilities, along with certain demographic characteristics of the students.
In 2009 Nahmens and Ikuma surveyed customer satisfaction with service quality, and assessed the correlations between various factors on home buyer expectations and their perceptions of service quality
The study of Yau et al (2009) used the Building Quality Index (BQI) developed by The University of Hong Kong to indicate determinants of building performance
Those are architecture, building services, operations and maintenance, external environment, and management approaches
This study will analyze customer satisfaction by examining key determinants, including customer cost, physical quality, environmental quality, service quality, project facilities, and regional facilities.
Hypotheses and model
Customer cost encompasses the total price of a product, which includes not only the initial purchase price but also the costs associated with its use and maintenance over time This comprehensive view of customer cost highlights the ongoing expenses that consumers must consider when owning a product.
Price reflects the consumer's awareness of the trade-offs involved in acquiring a product or service (Zenithal, 1988) The perceived quality, service, satisfaction, and value of a product or service can significantly influence its price Research by Varki and Colgate (2001) indicates a strong correlation between price and customer satisfaction, demonstrating that the perceived price positively affects customer satisfaction after a purchase.
In the apartment industry, customer cost significantly influences customer satisfaction, with price and support credit being key factors This leads to the hypothesis that there is a covariant relationship between perceptions of customer cost and the level of customer satisfaction.
H1: Customer cost has a significant positive direct effect on overall customer satisfaction
Quality of housing is a combination both of user requirements and user satisfaction
The condition of an apartment significantly impacts health, safety, and physical well-being, with factors such as wall quality, floor integrity, window and door conditions, and paint quality serving as key indicators of overall living standards (Ukoha and Beamish 1997, Salleh et al 2011).
The quality of apartment walls is crucial, as significant cracks can lead to extensive repairs Additionally, the materials used for the walls influence the building's temperature While apartment floors are typically made of cement, residents have the flexibility to choose alternative materials according to their preferences.
Quality windows are essential for ensuring proper ventilation and air circulation in an apartment Without adequate window functionality, indoor temperatures can rise, leading to discomfort for residents This situation can have negative effects on mental health, particularly for vulnerable groups such as children and the elderly.
To assess the quality of an apartment, it is essential to consider both its internal and external architectural features, as well as the surrounding area (Sale 2011) Key internal aspects include the overall dwelling size, dimensions of the living room, bedroom, kitchen, and bathrooms (Turkoglu 1997; Chi and Ann 1979; Liu 1999; Sale et al 2011; Poke and Abdul-Mushin 2010) Additionally, the number and location of bedrooms, along with the size of the dining room and laundry areas, play a significant role in determining the apartment's quality (Ibex and Amole 2010; Nurhayatii Sebli and Bujang Ahmad Ariffian 2008; Ilesanmi 2010; Ukoha and Beamish 1997; Mohit et al 2010).
The combination of size of living room, bedroom, dining room, toilets and bathroom, kitchens are the main issues studied by various scholars since 1980s
Number and location of bedroom, kitchen, commode, laundry, and washing area must be considered carefully to construct quality apartments
Lighting is a fundamental necessity, ranked as a top priority for users following health and safety concerns In new construction, the importance of lighting is heavily emphasized, as it significantly impacts mental health Conversely, inadequate lighting can lead to mental disorders, highlighting the critical role of proper illumination in our environments.
Lighting indicators can be categorized into three main types: a) Natural lighting, as discussed by various researchers including Djebarni and Abed (1998), Liu (1999), Calvert (2009), Ibem and Amole (2011), Pacione (1984), Ilesanmi (2010), Savasdisara et al (1989), and JianGe and Kazunori Hokao (2006); b) Artificial lighting, highlighted by Djebarni and Abed (1998) and Chi and Ann (1979); and c) Quality of lighting, as examined by Kincaid (1994).
Natural lighting refers to the effective distribution of daylight within an apartment, while artificial lighting is generated by electrical sources like lamps Today, artificial lighting is ubiquitous in various areas of an apartment, including living rooms, bedrooms, bathrooms, and public spaces Both natural and artificial lighting significantly influence the overall quality of illumination in an apartment, impacting both physical and mental well-being (Jeong and Lee 2006).
The fundamental requirements of an apartment, such as adequate water pressure and effective sewerage systems, significantly influence residents' psychological well-being and social interactions (Nurhayatii Sebli, Bujang Ahmad Ariffian, 2008) Proper drainage is essential to prevent health and cleanliness issues, which should be managed by the apartment management Consequently, the physical quality of an apartment plays a crucial role in meeting customer needs.
H2: Physical quality has a significant positive direct effect on overall customer satisfaction
When buying apartment, it is important to assess the environmental quality of the building because it affect the resident’s health and safety
High population density in apartment buildings often leads to significant noise from both neighbors and traffic, making it challenging to mitigate noise levels According to Parkers et al (2002), noise from neighboring units can negatively impact the overall atmosphere of a community, resulting in strained relationships among residents and contributing to social issues and a perceived lack of safety.
Excessive noise from traffic and outdoor disturbances, such as street fighting or violence, can create an unsafe environment for residents Domestic disturbances significantly impact mental health (Andersen 2008), making security a crucial consideration To enhance safety, apartment buildings should be equipped with a reliable security camera system.
The apartment is not only a place to live but also a place to rest, relax and communicate with the community So, environmental quality should be noted
Consequently, the third hypothesis is proposed as follows:
H3: Environmental quality has a significant positive direct effect on overall customer satisfaction.
In general, project facilities are necessary to enhance resident's daily activities
In designing an apartment, it is essential to incorporate basic utilities and services, as most daily activities take place within the building Key elements include parking spaces, lobbies, staircases, and elevators.
In apartment buildings, ladders and lifts are crucial for providing access to different levels They play an essential role in ensuring convenience and safety for residents.
Conclusion
This chapter explores the theoretical framework of customer satisfaction, identifying six key factors that influence it: customer cost, physical quality, environmental quality, project facilities, regional facilities, and service quality These factors also affect customers' intentions to engage in word-of-mouth activities Based on this analysis, a customer satisfaction model with seven research hypotheses has been proposed The following chapter will outline the research methodology.
The research model of customer satisfaction is illustrated in Figure 2.1 This model emphasizes the key factors influencing customer satisfaction and highlights the importance of understanding customer needs and expectations By analyzing these elements, businesses can enhance their service quality and improve overall customer experiences.
RESEARCH METHODOLOGY
Overview
This chapter outlines the research methodology utilized to develop and evaluate measurement scales, detailing the statistical techniques applied for data analysis, as well as the testing of the research hypotheses and model.
Research purpose
The study purpose is a broad statement of what the research hopes to achieve
According to purpose, study could be broadly divided into descriptive, exploratory and explanatory (Saunders et al., 2003; Cooper and Schindler 2006)
Descriptive research: It portrays and accurate profile events or situation It involves present facts about a phenomenon as it is perceived or as it is in reality
Explanatory research aims to establish causal relationships between variables, focusing on understanding the connections that exist within specific problems and situations This type of research is particularly valuable when the objective is to answer the question of 'why' in a given context (Saunders et al, 2003).
An exploratory study aims to uncover new insights about a phenomenon, particularly when the area of research is novel or requires a deeper understanding of a problem (Robson, 2002) This type of research employs various methods, including reviewing library materials, consulting experts, and conducting focus group interviews.
Since the purpose of the study involve both qualitative and quantitative results, the methodology has been proposed by many authors to be appropriate in some cases
This study combines all three: explanatory, descriptive and exploratory purposes
The study aims to provide a detailed description of the factors influencing customer satisfaction in the apartment industry, offering a comprehensive understanding of how apartment quality affects customer contentment.
This study aims to assess the significance of quality dimensions in relation to customer satisfaction within the Vietnamese apartment industry It is explanatory in nature, focusing on the factors that influence overall satisfaction Additionally, the research is exploratory, as it seeks to uncover customer perceptions and satisfaction levels regarding the apartment industry in Vietnam, an area that remains largely unexamined.
Research design
The research design of this study is shown in figure 3.1 The current study employs a descriptive method Data for this study was collected using a survey technique
This technique “provides a quick, efficient and accurate means of assessing information on a population, especially in the case of a lack of secondary data”
Item generation
The measurement scales for the research constructs in this study were derived from prior studies highlighted in the literature review Eight constructs—physical quality, customer costs, environmental security, project situation, project facilities, word of mouth, service quality, and customer satisfaction—were operationally defined to evaluate the research model.
In the last decade, number of national and international barometers have been introduced The development of national customer satisfaction barometers can be summarized as follows (Johnson et al., 2001):
1 The first attempt to develop and install a national measure for customer satisfaction was reported in Sweden in 1989 Professor Claes Fornell was the main architect of the Swedish National Customer Satisfaction Barometer
2 The national quality and satisfaction barometer of Germany (The German Customer Barometer––Quality and Satisfaction) focuses mainly on the micro- economical level of business organizations and it was established in 1992 tot nghiep do wn load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
The first draft of questionnaire
The final draft of questionnaire
DROP Items with item- total correlation
