What factors affect to the service quality of dussmann in hcmc

Introduction

Company background .9-10 2 Research Problem statement

In recent years, Vietnam's economy has experienced significant industrialization and modernization, leading to the rapid growth of industrial zones from North to South This expansion has attracted a substantial workforce from various provinces, resulting in a high demand for large-scale industrial kitchens However, concerns regarding food safety and quality service remain pressing issues for society.

The current food safety situation is causing significant anxiety among consumers, particularly due to recent food poisoning cases linked to collective kitchens Ongoing reports about food safety issues in various countries have heightened public concern Additionally, discrepancies in product quality testing results and challenges in food safety management have further unsettled producers and consumers alike, complicating efforts to maintain competitiveness as equal members of the WTO.

Effectively managing service quality is essential for boosting enterprise competitiveness, ensuring consumer safety, and significantly contributing to the economic and social development of the country.

To thrive in today's competitive market, companies must develop strategies that improve service quality to better meet customer needs Service marketers understand that establishing service quality as a competitive advantage begins with identifying consumer perceptions and the key factors that influence their views on service quality.

- BMBR5103_Tran Thi Thanh Trinh Page 9 of 53

Dussmann Vietnam, a subsidiary of Dussmann Germany, stands out as a leading provider of multi-services in Vietnam, specializing in catering and cleaning services for a variety of sectors including hospitals, factories, hotels, airplanes, office buildings, and schools.

With 20 years of operation in Vietnam market, the Company has built a strong brand in the market and constantly improve the quality of customer service

Business activities of the Company:

- Provide Catering service for businesses, schools, hospitals, factories, airplane… Company size:

Dussmann Company is a leading provider of catering services in Vietnam, serving a diverse customer base that includes hospitals, hotels, factories, offices, schools, and airplanes With the capacity to deliver approximately 40,000 meals daily, Dussmann caters to around 40 clients, both large and small, ensuring high-quality service and satisfaction.

Outstanding service leads to loyal customers who feel satisfied with their choice of a company after their experience These customers are likely to return and enthusiastically recommend the firm to others.

Value represents a customer's comprehensive evaluation of a service's utility, influenced by their perception of what they receive in relation to what they give This concept illustrates why companies with strong service reputations can often command higher prices than their competitors.

Achieving high quality significantly reduces the costs associated with correcting problems after they arise, as a strong emphasis on preventative maintenance minimizes these expenses Additionally, focusing on quality leads to lower employee turnover and decreases the costs related to motivating disengaged employees (Kotler, Bowen, and Makens).

In 1996, it was established that excellent service leads to increased market share and significant sales volume, which in turn supports the ability to charge premium prices To enhance the understanding of "Quality Service," it's essential to explore the factors that influence service quality, particularly in relation to improving the service standards of Dussmann Company This analysis aims to identify the key elements that contribute to elevating service quality to new heights.

Enhancing people's quality of life is essential for promoting social development, as greater happiness leads to more positive contributions to society Improving individuals' subjective well-being is crucial for fostering a thriving community (Diener, 2000).

Vietnam, a one-party nation, has shifted its focus from strict ideological adherence to prioritizing economic development goals After two decades of living under a subsidy system characterized by an asking-giving mechanism, the concept of "service" has become somewhat ambiguous among the populace.

1992 the wind of foreign investment in Vietnam to bring the concept of market economy should gradually form a more accurate perception of the nature of the "Service"

With the globalization, although state-owned economy still remained a key role, but under pressure from growing competition, to survive and thrive, companies must focus on Quality Service

The fulfillment of needs is essential for happiness, while unfulfilled needs lead to unhappiness The level of satisfaction derived from meeting these needs varies based on individual adaptation levels, which are shaped by past experiences, comparisons with others, and personal values.

Individuals participate in events to elicit both positive and negative emotions within specific life domains, compensating across these areas Positive emotions enhance immediate subjective well-being, while negative emotions drive individuals to plan for the future, learn from past mistakes, and seize new opportunities This negative affect serves as a fundamental motivation to pursue future goals, as people anticipate future joy.

As Vietnam's economy continues to grow, it is essential for society to adapt to the market economy by transitioning from a traditional ask-give approach to a Win-Win service model This shift places the customer at the heart of economic activities, emphasizing the importance of individual contributions to enhance the service chain By focusing on "Quality Service," Vietnam aims to deliver effective solutions that benefit both individuals and society as a whole.

Research Scope

This research examines quality service through the five SERVQUAL dimensions: Tangibles, Reliability, Responsiveness, Assurance, and Empathy A survey is designed to gather feedback from Dussmann Vietnam customers, providing insights into these factors The findings aim to assist the CEO of Dussmann Vietnam in developing effective strategies to enhance service quality.

Literature Review

What is Quality Service .13-18

Service quality, as outlined by Gronroos (1982), is fundamentally rooted in customer perceptions rather than the views of designers or operations personnel This perspective emphasizes that the essence of service quality is derived from the marketing concept, which prioritizes the customer's experience and understanding of quality Ultimately, it is the customer's perception that defines what constitutes good or bad quality in service.

The Perceived Service Quality Model

Services are inherently intangible, requiring customers to establish trust before making a purchase In the hospitality industry, where service is the primary offering, the quality and perception of that quality are crucial High service quality provides numerous advantages, enabling organizations to adopt a differentiation strategy in a competitive landscape filled with similar hospitality products and services.

Creating a stunning hotel is within anyone's financial reach, but delivering exceptional service quality is a unique challenge Meeting customer expectations is crucial, as it directly reflects the overall service quality provided.

The Perceived Service Quality model suggests that service quality is determined by the gap between customer expectations and actual experiences When the "experienced quality" surpasses customer expectations, satisfaction is achieved.

The perceived quality of an internship program is influenced by the alignment between initial expectations and actual performance; when expectations are met, the perceived quality is high, but if they fall short, it diminishes This dynamic involves multiple stakeholders, including students, internship providers, and sponsoring entities, all of whom contribute to the overall success of the program.

The theory of systems serves as a research model aimed at establishing favorable conditions for general principles of conduct across various organizations (Sirgy, 2012) It posits that organizations, such as service companies, consist of smaller subordinate systems, like departments, that operate within a larger environmental context Key themes of general systems theory include the interactions among these smaller units and the relationship between the system and its surrounding environment (Kast and Rosenzweig, 1972).

For a long time, many researchers have tried to define and measure service quality For example, Lehtinen & Leht inen (1982) for the quality of services must be assessed on two aspects:

- Results of service Gronroos (1984) also suggested that the two components of quality of service:

- Technical quality, which is what the customer receives, and,

- Functional quality, interpretation How services provided

According to the Book “Delivery Quality Service” by Valarie A Zeithaml (1998)

Service quality has emerged as a critical concern due to the transformation of America's economy into a service-oriented model Currently, services contribute to about 75% of the gross national product and are responsible for creating 90% of new jobs in the economy.

With service excellence, everyone wins Customers win, Employees win, Management wins, Stock holders win, Communities wins The countries wins

For this reason, I conducted this research to know clearly about some factors influence the Quality Service

The main content of this research will show clearly the correlation relationship between mentioned factors and Service Quality which decided the survival of a Service Company like Dussmann Vietnam

The core motto of a service company is to prioritize customer satisfaction, as customers are essential for generating revenue and profits High levels of customer satisfaction significantly increase the likelihood of repeat business and encourage positive word-of-mouth referrals Additionally, consumer satisfaction is deeply emotional, influenced by every interaction or transaction with the company, reinforcing the importance of delivering exceptional service.

Quality service and customer satisfaction, while distinct concepts, are intricately linked in service studies (Parasuraman & CTG, 1988) Previous research indicates that the quality of service directly influences customer satisfaction (e.g., Cronin).

Service quality significantly impacts customer satisfaction, as evaluations occur post-service usage Enhancements in service quality must align with customer needs; otherwise, satisfaction will not be achieved When customers perceive high-quality services, their satisfaction increases, while low-quality perceptions lead to dissatisfaction.

Cultural differences significantly influence consumer perceptions of service quality across various countries (Malhotra & CTG, 2005) This study aims to investigate the components of service quality and examine the relationship between service quality and customer satisfaction.

However, when mention to quality of service, we can not don’t mention to the great contribution of Parasuraman & CTG (1988, 1991) Parasuraman & ctg (1988, page

17) service quality definition is "different levels between the expectations of consumers of services and their awareness of the results of the service" These authors have initiated and using qualitative research and quantitative expertise to build and scale the components of quality of service (called SERVQUAL) SERVQUAL be adjusted and tested in many different types of services Finally SERVQUAL consists of five components of quality of service, that is:

Parasuraman et al (1991) developed the SERVQUAL scale to measure service quality, emphasizing value and reliability across various service types Nonetheless, each service sector possesses unique characteristics, necessitating tailored studies to adapt the SERVQUAL framework for specific contexts.

Measuring all aspects related to services is crucial for service companies, as the interaction between suppliers and customers plays a vital role By employing various measurement methods, businesses can identify key factors and allocate resources more efficiently among service providers The increasing importance of perceived product quality as a competitive factor has led to the current business era being referred to as the "Quality Era" (Peeler, 1996).

Service marketing experts have proposed various metaphors to illustrate the significance of service quality, with Berry describing it as a powerful competitive weapon and Clow referring to it as the organization's lifeblood Understanding service quality is complex, as it is a multi-dimensional phenomenon that requires distinguishing its key aspects Gronroos identifies three dimensions of service quality: technical quality, service performance quality, and the organization's mental image Additionally, Lehtinen and Lehtinen highlight physical quality, interactive quality, and organizational quality as essential dimensions of service quality.

Methodology and data collection method

Methodology

This chapter details the research methodology for gathering primary data to address the question of what factors influence the service quality of Dussmann in Ho Chi Minh City (HCMC) It begins by outlining the research approach taken, followed by a justification of the data collection strategy employed for analysis Finally, the chapter will address the limitations encountered during the data collection process.

The deductive approach involves formulating hypotheses based on theoretical propositions, focusing on deriving conclusions from established premises.

Quantitative Data collection 27-28 3 Measurement Scale and Research Questions …………………………… 29-30

Primary research typically consists of two main types: quantitative and qualitative data collection Quantitative data collection focuses on numerical assessment, allowing researchers to analyze information through statistical methods This approach enables a deeper exploration of the data, uncovering more significant insights.

Certain information is by nature numerical But under the right circumstances numbers can also be used to represent certain characteristics which are not on the surface considered numerical

The research utilizes a questionnaire, which offers a quantitative description of clients' perceptions, attitudes, and opinions This data collection method is highly effective for accessing valuable insights from clients, making it the most efficient approach for this study.

This study utilized the sampling rules established by Comrey and Lee (1992) to evaluate 22 quality service factors A survey was conducted with 250 respondents, where the questions were tailored to align with the research objectives The questionnaire was standardized for consistency among all participants.

The researcher was able to reduce the misinterpretation of the questions by aiding respondents, thus limiting errors (Saunders et al 2007)

The number of survey Quality service factors m = 22 Therefore, the total minimum sample size n 22 * 11 = 242

Total votes emitted survey of 250 votes, the votes of the 250 surveys collected, of the valid votes of 250 votes

Handling, data analysis: after the data gathered from the survey, using data processing software SPSS 16 to conduct statistical process data, run the model and tested

The duration of the questionnaire and collected: the date 15/11/2016 to date 15/12/2016

Criteria for sampling as customers are using the company's services

While this method proves effective primarily within large, foreign-owned companies, it could be enhanced by incorporating a broader range of responses based on nationality and individual circumstances This approach would also facilitate increased interaction with other companies, allowing for the exchange of diverse views and opinions Furthermore, it guarantees a positive 100% response rate and ensures that all pertinent questions are addressed.

For ethical reasons surveys were not distributed to persons under the age of 18 All respondents were verbally notified that no personal information will be disclosed to any other party

When creating measurement scales, it is essential to assess their quality based on four key criteria: reliability, value, diversity, and ease of response The measurement process is inherently subject to two types of errors: systematic and random To enhance the accuracy of measurement scales, it is crucial to minimize these errors.

A reliable measurement scale ensures consistent results across various assessments by eliminating random errors, thereby providing trustworthy data In this study, the author employs a five-level Likert scale to evaluate different factors.

Scale 5: Totally agree Scale 4: Agree

Scale 3: No opinion Scale 2: Disagree Scale 1: Totally disagree With the element of personal characteristics: combined use some scales such as scales identifier for information about sex, educational level

To study the factors affecting the satisfaction of clients to Dussmann services, we will conduct questionnaire design Design information questionnaire follow 8 basic steps:

Step 1: Identify the data to look for: Based on the objectives and content of the study, to determine the overall specific research, content research and the factors affecting the quality of service

Step 2: Determine the method to send the table of questions: this topic I will conduct e-mail and by mail or fax then call notification and confirmation information

Step 3: Outline content questionnaire: Corresponding to each content needs to research, outline the questions that should be asked

Step 4: Select the format for the question: There are many types of questions for questionnaire design; however in this topic I prefer the order form Likert scale with 5 levels and order; respondents simply read the content and the order volume in the box they are in line with their views

Step 5: Determine the appropriate wording for the questionnaire Step 6: Determine the questionnaire structure: I will organize the questions in logical sequence This question must lead to the next question in a logical sequence, according to a continuous stream of thought A major problem should split among several minor issues In the answer again raises the question branching to continue screening information

Step 7: Design the presentation of the questionnaire: The questionnaire is designed to present on 2 pages A4, with a 6-step structure as presented and sent via e- mail attachment and then printed on A4 paper to facilitate the questions, archives and statistics

Step 8: Try to test survey questionnaire: After designing the questionnaire was sent to 10 respondents (survey of previous exploration) to consult them again and also to adjust the table asked the last time before mass deployment

Results, Finding and Presentation of data

Method of data Analysis

1.1 Inspection of the Reliability of the scale: Cronbach Alpha

According to Lee Cronbach (1951), Cronbachs alpha is a coefficient of internal consistency Nunnally (1978, p 245) recommends that instruments used in basic research have reliability of about 0.6 or better

Corrected Item-Total Correlation—This is the correlation of the item designated with the summated score for all other items The corrected item-total correlation should be > 0.3 (Maltby 2007, Brzoska 2010)

To evaluate the scale's reliability, the authors calculated the Cronbach's alpha coefficient and the correlation coefficient for the overall variables Many researchers agree that a Cronbach's alpha of 0.8 or higher indicates strong reliability, while values ranging from 0.7 to nearly 0.8 are also acceptable Additionally, a Cronbach's alpha of 0.6 or higher may be suitable when exploring new concepts or when the respondents are unfamiliar with the research context Therefore, this study adopts a Cronbach's alpha threshold of 0.6 or more.

In which the variables have correlation coefficients less than 0.3 turns of the total variation is considered garbage and will be removed from the scale

1.2 Analysis EFA (Exploratory Factor Analysis)

Exploratory Factor Analysis (EFA) is a powerful technique used to condense and summarize data, helping researchers identify essential variables and understand their interrelationships A review of factor analysis in conceptual studies highlights its significance in demonstrating differentiation and scale convergence The Kaiser-Meyer-Olkin (KMO) coefficient indicates the level of intrinsic correlation among observed variables, with a KMO value between 0.5 and 1 suggesting that factor analysis is appropriate Conversely, a KMO value below 0.5 may indicate the presence of irrelevant data, making factor analysis less effective.

This analysis step with the main purpose is to assess the value of the scale When factor analysis to explore interest in a number of the following criteria:

The KMO (Kaiser - Meyer - Olkin) ≥ 0.50 should be between 0.5 -> 1 is a sufficient condition for factor analysis is appropriate, if the value of KMO 50% and Sig of ANOVA 0.6 , < 0.811 and correlation

>0.3, so all of them are appropriate for study

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Cronbach's Alpha if Item Deleted

Cronbach’s Alpha of 03 Responsiveness factors are > 0.6 , < 0.825 and correlation >0.3, so all of them are appropriate for study.

Cronbach’s Alpha of ASS1 and ASS3 are > 0.6 , < 0.706 and correlation >0.3, so they ar appropriate for study but ASS2=0.596< 0.6 so it is unreliable for study (will be remove from analysis)

Cronbach’s Alpha of 03 Empathy factors are > 0.6 , < 0.745 and correlation >0.3, so all of them are appropriate for study

Cronbach’s Alpha of 04 Satisfaction factors are > 0.6 , < 0.758 and correlation

>0.3, so all of them are appropriate for study

The analysis indicates that all Cronbach's Alpha coefficients for the factors exceed 0.6, confirming the reliability of the survey results Additionally, the Corrected Item-Total Correlation values are above 0.3, qualifying the factors, except for ASS 2, which has a value of 0.596 and will be excluded from the scale.

The selection process outlined in the table involves calculating Cronbach's alpha coefficients for both independent and dependent factors To ensure reliability, three criteria must be met: a Cronbach's alpha value greater than 0.6, total factor correlations exceeding 0.3, and the exclusion of any factor with a Cronbach's alpha that does not meet these standards Factors that fall below the 0.6 threshold or have unsatisfactory total correlation values will be removed from consideration, ensuring the integrity of the analysis.

The initial assumption of 22 explanatory quality service factors was refined through analysis, leading to the elimination of one factor that showed inconsistent statistical values To ensure the reliability of the remaining factors, the author conducted a retest using Cronbach's alpha coefficients, confirming that the adjusted factors met satisfactory statistical standards.

After conducting a Cronbach's Alpha test, all factors met the statistical conditions for reliability Consequently, the author will continue research through factor analysis, identifying a total of 21 factors, which include 17 independent factors and 4 dependent factors.

1.2 Result of Analysis EFA (Exploratory Factor Analysis)

Exploratory Factor Analysis (EFA) is a statistical technique used to examine the relationships among a large set of variables, aiming to uncover the underlying structure by identifying factors that represent the dimensions within the data.

The suitability of factor analysis for the sample data is assessed using the Kaiser-Meyer-Olkin (KMO) statistic A KMO value exceeding 0.5 indicates that factor analysis is appropriate Additionally, factors should have an Eigenvalue greater than 1, and the total variance extracted must surpass 0.5 It is crucial that independent and dependent variables maintain a loading factor of at least 0.55 to avoid any significant weighting transmission issues among component variables.

25 will be removed from the scale

We can evaluate the accuracy of our factor specification by comparing it to the actual data Exploratory Factor Analysis (EFA) is an interdependence technique that analyzes the correlations among variables without distinguishing between dependent and independent variables EFA condenses a set of k observed variables into a smaller set of F factors (where F < k), highlighting the most significant factors This reduction is grounded in the linear relationships between the factors and the original observed variables.

- BMBR5103_Tran Thi Thanh Trinh Page 39 of 53 analysis, methods of deduction Pricipal Components Analysis along with Varimax rotation method used is the most popular

Kaiser-Meyer-Olkin Measure of Sampling

KMO = 784 > 0.5 factor analysis of data relevant to the study Bartlett test results with significance level Sig = 0.000 0.5 factor analysis of data relevant to the study Bartlett test results with significance level Sig = 0.000 0.5 factor analysis of data relevant to the study Bartlett test results with significance level Sig = 0.000

Tiêu đề	What Factors Affect to the Service Quality of Dussmann in HCMC
Tác giả	Tran Thi Thanh Trinh
Người hướng dẫn	Dr. Hung Bui
Trường học	University of Ho Chi Minh City
Chuyên ngành	Service Quality
Thể loại	Research Project
Năm xuất bản	2016
Thành phố	Ho Chi Minh City

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