INTRODUCTION
Research rationale
In 2022, the Vietnamese auto market achieved a historic milestone by surpassing 500,000 vehicle sales, totaling 509,139 vehicles Among these, Hyundai sold 81,580 vehicles, while VinFast contributed 22,924 vehicles, according to VAMA.
In December 2022, the Vietnam Automobile Manufacturers Association (VAMA) reported that member sales totaled 35,301 vehicles, reflecting a 3% decrease from November 2022 but a 24% increase compared to December 2021 Passenger cars dominated the market with 27,262 units sold, marking a 5% rise from the previous month Sales of commercial vehicles rose by 20%, while specialized vehicles saw a significant increase of 67% Domestic assembled cars sold reached 17,666 units, down 6% from November, whereas CBU imported cars achieved sales of 17,635 units, up 0.4% year-on-year Notably, TC Group reported a strong performance, with Hyundai's December sales reaching 9,545 vehicles, a 26.5% increase from November, culminating in total sales of 81,582 Hyundai vehicles for 2022.
Ford Vietnam holds the seventh position in the VAMA rankings with an 8.10% market share, excluding competitors like Hyundai Thanh Cong and Vinfast However, its market position is increasingly challenged by numerous rivals.
In 2022, the top 5 markets showcased significant growth compared to 2021, with the B-segment sedan category leading, featuring the Toyota Vios and Hyundai Accent The MPV segment also experienced notable expansion, highlighted by the Mitsubishi Expander in third place Additionally, the Ford Ranger secured the fifth position with 16,477 units sold, maintaining its status as the best-selling pickup model in Vietnam for several consecutive years.
Consumer demand for cars is on the rise, driven by improved quality and strong investment in the automotive industry However, the significance of after-sales service has become increasingly apparent, especially as private consumption declines due to reduced incomes, leading to a decrease in new car demand and an extension of vehicle lifespans In response, car dealerships have shifted their focus to aftersales services, which have proven to be resilient during economic downturns, particularly following the 2008 financial crisis As a result, the aftersales service sector has gained importance, emerging as a key source of revenue and customer loyalty for dealerships.
Automotive service organizations are facing intense global competition, which is anticipated to escalate due to ongoing globalization and strategic alliances within the automobile industry A key factor influencing this competitive landscape is the quality of aftersales service, recognized as a crucial element in determining market success.
Aftersales service quality is a crucial factor for organizational leaders, as it directly influences organizational growth, customer loyalty, and overall performance.
The declining quality of service at car dealerships is a dealership issue rather than a brand issue, as it pertains to the service delivered rather than the product itself New car owners have heightened expectations for service quality, increasing pressure on both vehicle manufacturers and dealerships to enhance their products and services (Gencer & Akkucuk, 2017).
In 2015, customer experiences with automobile aftersales service were notably unsatisfactory, with car dealerships' aftersales departments facing significant criticism for their services and repairs (Gencer & Akkucuk, 2017; Rangarao, 2013) This dissatisfaction underscores the critical need for dealerships to enhance the quality of their aftersales services, as doing so is essential for improving customer satisfaction and fostering positive behavioral intentions.
In the increasingly competitive automotive industry, companies must adapt to the growing demands of customers who seek high-quality products at minimized costs To gain a competitive edge, Vietnamese auto manufacturers need to prioritize customer satisfaction by understanding and addressing customer needs and desires This involves actively gathering feedback to identify strengths and weaknesses in their products and services, allowing them to make necessary improvements By focusing on these aspects, companies can enhance customer loyalty and prevent the risk of losing clients to competitors.
Ford must assess customer satisfaction regarding product service quality, including repair and warranty services This evaluation will provide insights into the strengths and weaknesses of Ford's dealer system in Vietnam, enabling the company to develop targeted strategies to enhance products and services By aligning customer needs with business objectives, Ford can foster satisfaction and cultivate long-term customer loyalty, which is essential for establishing a competitive edge in the current market economy.
Research objective
This quantitative correlational study investigates the factors affecting client satisfaction with the scheduled maintenance service quality at Ford Viet Nam, Ltd It aims to develop a customer satisfaction research model specifically for these services and evaluates customer contentment with their excellence The study also proposes policy implications to enhance user satisfaction In this context, service quality dimensions serve as the independent variable, while customer satisfaction is the dependent variable The nomenclature of study variables follows the guidelines of Flannelly and Jankowski (2014), distinguishing between manipulated and observed variables.
Research method
The research was conducted in two steps: preliminary research and formal research.
Preliminary research utilized qualitative methods, specifically hand-to-hand discussions, to investigate customer satisfaction models related to Ford's services and to develop attributes for a survey questionnaire.
Formal research involved in-person interviews, online surveys, and email correspondence with clients using agent services The reliability of the customer satisfaction measurement scale was assessed using the Cronbach Alpha coefficient and exploratory factor analysis (EFA) via SPSS Following this, an analysis of customer satisfaction was conducted to evaluate and enhance customer happiness The study aimed to increase customer satisfaction with repair, maintenance, and warranty services A total of 110 participants who had their vehicles serviced at Ford dealerships in Vietnam contributed to the quantitative analysis.
Research structure
Beside the executive sumary, this banchelor thesis also conclude:
THEORY FRAMEWORK
Theoretical overview of customer satisfaction in services
2.1.1 The definition and characteristics of service
The term "Service" is defined by the Oxford English Dictionary as the action of serving or helping others, emphasizing conduct that benefits another's welfare Researchers, including Kotler (1972), describe service as an intangible act performed by one party for another, which does not involve the transfer of property ownership and may or may not relate to a physical product Gronroos (1984) further characterizes service as an intangible activity or set of activities that typically occur through interactions between customers and service personnel or systems, aimed at providing solutions to customer issues.
The excellent service provided stems from extensive discussions among researchers regarding the applicability of physical product marketing methods to service marketing, a distinct area of study that emerged in the 1970s (Brown & Bitner, 1994) Researchers have utilized the marketing mix to analyze the unique characteristics of services.
According to (Kotler, 1972), services have four unique characteristics which are intangibility, inseparability, variability, and perishability.
Intangibility in services has faced criticism due to the presence of tangible elements involved in their delivery, such as aircraft, food, and staff, as well as customer-related items like baggage (Shostack, 1977) While these tangible goods play a role in the service process, the core performance of the service itself remains intangible (C H Lovelock, 1983) Consequently, services cannot be seen, touched, felt, or tasted prior to purchase, making it essential for clients to depend on the service provider's reputation, references, and facilities to assess service quality.
Inseparability highlights the intrinsic connection between services and their providers, as services are developed and consumed simultaneously (Berry, 1980) Consequently, service providers must prioritize the quality of their offerings, recognizing that the interaction between consumers and providers is crucial (C H Lovelock, 1983).
Services are highly perishable; if not utilized at the moment they are offered, they are lost Unlike physical products, unused services cannot be stored for future use.
Heterogeneity in services means that they cannot be uniformly provided to all buyers, making standardization challenging Previous research has identified various factors contributing to this heterogeneity, such as service outcomes (Lovelock, Christopher & Evert, 2004), the production performance of different providers (Lovelock, Christopher & Evert, 2004), and variations in production performance over time (Iacobucci, 1998) Consequently, service providers offer their services in diverse ways.
Academics were prompted to rethink service marketing in efforts to answer a variety of issues by the specific service features
2.1.2.1 The definition of service quality
In a competitive industry, businesses strive to differentiate themselves, and one effective strategy is to deliver exceptional service quality, which has been associated with positive results.
Evaluating service quality is inherently more challenging than assessing physical products due to its intangibility and simultaneous production and consumption (Parasuraman et al., 1988) It encompasses a set of criteria that customers utilize to gauge their experiences (Saravanan, 2007) Essentially, service quality represents an intangible offering exchanged for monetary value (Michael R Solomon, 2009) It is defined as the gap between consumer expectations and the actual service received (Parasuraman et al., 1988).
Researchers have identified two main perspectives on service quality: the Nordic or European approach, which encompasses both functional and technological elements, and the American model, characterized by terms such as "reliability," "empathy," "responsiveness," "assurance," and "tangibles." While the American model has been more prevalent in literature, there remains a lack of agreement on which perspective is the most appropriate.
Experts have embraced either the multi-dimensional model by Parasuraman et al (1988) or the two-factor model by Grűnroos (1982) to define service quality This quality is perceived through a client's assessment of a company's functional value, encompassing five key dimensions: reliability, responsiveness, empathy, assurance, and tangibles The present study focused on the latter definition, emphasizing these five critical aspects of service quality.
2.1.3.1 The definition of customer satisfaction
Customer satisfaction has been widely studied for its impact on retention, market share, and sales growth Kotler (1972) defines it as the feelings of pleasure or disappointment resulting from the comparison of a product's perceived performance to expectations Oliver (1980) describes satisfaction as the emotional response to a product or service experience, particularly when performance does not meet expectations Lu (2015) further characterizes customer satisfaction as the joy derived from comparing product quality to personal expectations.
2.1.3.2 The importance of customer satisfaction
Customer satisfaction is essential for business success, driving purchase intention, brand loyalty, and positive word of mouth (Claes Fornell, 1996) A statistical study by Growth Strategies International (GSI) analyzed over 20,000 customer surveys conducted by Info Quest across 40 countries, revealing significant insights into customer satisfaction (Coldwel, 2001).
A Satisfied Customer brings in 2.6 times the amount of income as a Somewhat Satisfied Customer.
A Satisfied Customer brings in 17 times the income of a Slightly Dissatisfied Customer.
A Dissatisfied Customer reduces income by 1.8 times the amount a Totally Satisfied Customer gives to a company."
Customer satisfaction plays a crucial role in fostering positive behavioral intentions and emotions, such as joy and excitement, particularly in the automotive industry (Izogo & Ogba, 2015) It helps car dealership service managers establish trust and cultivate favorable feelings towards the dealership, ultimately encouraging customers to return for future services and recommend the dealership to others (Jain et al., 2020).
Customer loyalty and organizational profitability are closely tied to high customer satisfaction levels, as noted by Claes Fornell (1996) Enhancing customer satisfaction can lead to increased retention, improved reputation, better financial performance, greater market share, and reduced costs for acquiring new customers Furthermore, assessing customer satisfaction enables executives to formulate competitive strategies by benchmarking against industry leaders, identifying weaknesses, and making necessary quality improvements to elevate customer satisfaction.
Customer satisfaction is shaped by multiple factors, including friendly and polite employees, competent and helpful staff, as well as accurate and timely billing Competitive pricing, high service quality, good value, and clear billing also play crucial roles in enhancing customer contentment Research indicates that quality is a significant determinant of customer satisfaction, demonstrating a positive correlation with overall happiness.
1992) Other studies use the term "service excellence" to describe this situation
(Mahoney, 1994) (Masden, 1993) defines "service excellence" as a company's attempts to delight and exceed its customers' expectations "Service excellence" focuses on
"listening, empowerment, creativity, and involving customers and staff in the process," according to Masden Therefore, many companies realize that customer satisfaction must start from their employees’ satisfaction (Bitner, 1990)
2.1.3.4 Customer satisfaction and service quality
Previous studies
In the automotive industry, research has focused on customer satisfaction regarding car maintenance service quality Ernest Emeka Izogo (2015) conducted two studies on this topic, including "Service quality, customer satisfaction and loyalty in automobile repair services sector," which aimed to explore the SERVQUAL scale's dimensional structure in a non-western context and its impact on customer satisfaction and loyalty Utilizing a quantitative approach, a 32-item questionnaire was distributed to 384 participants, achieving a usable response rate of 55.99% Data analysis involved exploratory component analysis and Cronbach's internal consistency test, revealing a reduction in scale items from 32 to 26, with a total score of 0.929 The findings indicated that service quality dimensions significantly predict customer satisfaction and loyalty, with the commitment dimension having the most substantial effect.
In 2013, Izogo's study titled "Customers' Perception of Service Quality in Automotive Repair" aimed to assess the dimensionality and diagnostic effectiveness of the SERVQUAL model in a non-Western context for car repair services The research involved factor analysis and internal consistency testing on data from 555 randomly selected participants, achieving a response rate of 50.63% The findings indicate that the SERVQUAL scale is effective for evaluating service quality in non-Western automotive maintenance settings Notably, while the original five-dimensional SERVQUAL structure was replicated, significant differences in item assignment were observed, with empathy identified as the most critical component of service quality.
Gencer (2017) supports the use of SERVQUAL as an effective tool for measuring service quality in the automobile aftermarket service sector This study aims to develop a questionnaire, named AutoSERVQUAL, to evaluate after-sale care for vehicles The research begins with a review of existing service quality measurement scales, followed by the adaptation of SERVQUAL for car owners who have purchased additional services from dealerships Employing a mixed-methods approach, the study incorporates qualitative techniques such as in-depth interviews, focus groups, and participant observations The application of SERVQUAL to automotive after-sale services is thoroughly detailed, from expert interviews to statistical analysis Ultimately, the research narrows down an initial set of 45 questions to a refined 28-item scale that effectively measures service quality in automotive after-sales services.
A study conducted in Saudi Arabia by Kanina (2020) utilized the SERVQUAL methodology to assess customer perceptions of service quality at automotive dealerships This quantitative correlational research aimed to explore the relationship between service quality dimensions, customer satisfaction, and behavioral intentions among GM vehicle owners who had their cars serviced at GM dealerships from 2015 to 2019 An online survey of 88 consumers was analyzed using Pearson's correlation test, revealing a statistically significant moderate to strong positive relationship among the five service quality dimensions—tangibles, reliability, responsiveness, assurance, and empathy—and customer satisfaction and behavioral intentions Notably, service assurance emerged as the most influential factor in fostering customer satisfaction.
In their 2012 study, Shuqin and Gang analyze the relationship between service quality, relationship quality, and relationship value in China's auto industry using a structural equation model They identify five key dimensions of service quality: fairness, empathy, reliability, responsiveness, and convenience, alongside three dimensions of relationship quality: satisfaction, trust, and commitment Their research, which involved 327 consumers in the automotive after-sales service sector, reveals that fairness, empathy, dependability, and convenience significantly enhance customer satisfaction, while responsiveness does not show a notable positive effect.
In Thai Land, (Chaichinarat, P., & T., 2018) have conducted research on the topic of customer satisfaction in the aftersales automobile business using the SERQUAL model.
As a result, the goal of this article is to explore service quality inside Thailand's Suzuki
The study utilized the SERVQUAL model's five dimensions—tangibles, dependability, responsiveness, assurance, and empathy—to analyze service quality at Suzuki Motor Company in Thailand A total of 537 clients participated in the survey, selected through a multi-stage random sampling process, with data collected via a 5-point Likert scale questionnaire Both quantitative and qualitative methodologies were employed, leading to an analysis of mean, standard deviation, correlation, and percentages The results indicated that all variables had positive weights, confirming the accuracy of the hypothesized model in predicting outcomes related to the five dimensions of service quality.
Famiyeh, Kwarteng, and Asante-Darko (2018) utilized the SERVPERF model to explore the connection between five dimensions of service quality and customer satisfaction in car maintenance services, omitting expected service quality items to streamline survey responses This study aims to understand how service quality influences customer satisfaction and loyalty among Ghanaian car owners, focusing on which service quality dimensions contribute to satisfaction and its implications for loyalty Using a survey and partial least squares-structural equation modeling, the research found that empathy, assurance, responsiveness, and tangibles positively correlate with customer satisfaction, while the mechanic's dependability does not Additionally, customer satisfaction directly influences customer loyalty, with empathy and reliability significantly affecting loyalty, whereas assurance, responsiveness, and tangibles do not The moderation analysis revealed no significant differences based on the duration of consumer interactions with the mechanic.
In Viet Nam, There were few research project related to the after sale services (Chien,
In a 2015 study titled “Research on Customer Satisfaction for Tourist Car Maintenance and Repair Services at a One-Member Limited Liability Company in Da Nang,” the revised SERVPERF model was utilized, incorporating six dimensions: five from the original SERVPERF model and an additional dimension, “Policy.” The findings indicate that customer satisfaction is influenced by these six components, with Empathy and Tangibles emerging as the most significant factors, exerting a greater impact on customer satisfaction than Reliability, Responsiveness, Policy, and Assurance.
A study by Van (2013) titled “Measuring customer satisfaction about service quality at Ford dealers” utilized an integrated qualitative and quantitative research approach The qualitative aspect involved one-on-one discussions with two managers and group discussions with regular service users at Ford dealerships For the quantitative research, the authors revised the SERVQUAL model to include six dimensions: Reliability, Responsiveness, Assurance, Price, Customer Care, and Service Quality Perception Following the completion of the revised survey questionnaire, formal quantitative research was conducted, measuring service quality through five components of an impact scale and one component of a dependent scale, totaling 26 observed variables Ultimately, the findings led to a reduction in the observed variables from six to five, focusing on Service Price, Responsiveness and Customer Service, Reliability, Service Quality Perception, and Assurance.
A recent study titled "Research on Customer Satisfaction with the Quality of Repair and Warranty Services at Toyota Da Nang Co., Ltd" utilized the SERVPERF model, which includes five key variables: Tangibles, Reliability, Responsiveness, Assurance, and Empathy Conducted with 139 customers who sought repair and maintenance services, the research confirmed the reliability of the scales through Cronbach's alpha analysis An exploratory factor analysis (EFA) identified five distinct groups from 23 initial variables Regression analysis revealed that all five independent variables positively influence customer satisfaction, with Responsiveness having the most significant impact, followed by Tangibles, Empathy, Reliability, and Assurance.
This research project will utilize the SERVPERF model to assess customer satisfaction regarding the quality of scheduled maintenance services at Ford Vietnam, drawing insights from previous research papers.
Define research topic and research objective
Study the theory framework of previous study
Examine cronbach alpha reliability analysis
Examine correlation and regression analysis
-Rate the level of satisfaction
- The implication of the solution
RESEARCH METHODOLOGY
Research Process
Step 1: Identify the research problem, research question and research objective Step 2: Refer to documents related to the research topic, then propose a research model and establish research hypotheses.
Step 3: Prepare the questionnaire and edit the questionnaire A draft questionnaire with scales based on previous studies was established After that, the questionnaires were mock interviews, in consultation with the lecturers Finally, a primary Quantitative was conducted.
Step 4: The author conducts surveys and collects data and questionnaires were filled out directly from Edit and adjust the data, the reliability of the measurement methods analyzed by Cronbach's Alpha and must meet the requirement of the coefficient above 0.6.
Step 5: Test the research hypotheses and determine the relationship of the factors in the model through multivariate regression analysis
Step 6: The author writes a report, in order to satisfy the original research objectives And finally give suggestions and recommendations and solutions to improve customer satisfaction with the scheduled maintenance service of Ford dealers.
Research design
3.2.1 Research method and design appropriateness
This study employed a quantitative and correlational research method to examine the relationship between service quality and client satisfaction Due to the need for deduction and objectivity in addressing the research questions, a positivist approach was adopted The quantitative correlational technique was identified as the most appropriate method for evaluating the connection between these variables (Dobrovolny, 2008).
Due to the large population size and the extensive sample required for a qualitative study, a quantitative research approach was deemed most suitable This method is considered more efficient as it demands fewer resources compared to qualitative research (Allwood, 2012) Additionally, the results obtained from this quantitative approach can be generalized to the broader public.
A quantitative study can utilize various research designs, specifically focusing on causal-comparative or correlational strategies The primary aim of correlational research is to assess the strength and direction of the relationship between two variables (Raines, 2013) Correlation involves examining naturally occurring associations without manipulation (Raines, 2013), with the objective of understanding how changes in one variable relate to changes in one or more other variables.
The experimental research design was considered for this investigation, where participants are randomly assigned to experimental and control groups to assess cause and effect (Brown & Melamed, 1990) However, since there was no effort to manipulate the independent variable to establish causation, this approach was not the most suitable choice for the study.
3.2.2 Proposed research model and hypothesis
The five dimensions of service quality identified by Parasuraman et al (1988)—tangibles, reliability, responsiveness, assurance, and empathy—are linked to customer satisfaction, as illustrated in the research operational model (figure 4) In this study, these service quality dimensions serve as the independent variables, while customer satisfaction is the dependent variable.
The SERVPERF model was selected to comprehensively assess the quality of auto warranty and repair services at Ford Company Limited, based on insights from prior research models and theoretical studies on service quality.
Experimental research by Carman (1990) indicates that the five service quality factors exhibit inconsistencies in cross-sectional analysis, making it challenging to differentiate between expectations and perceptions, as noted by Babakus and Boller.
(1992) have supported (Carman, 1990) view of aspects of the SERVQUAL model that the service quality under investigation depends on the type of service.
The customer expectations part of the SERVQUAL model does not add any information from the customer perception (Babakus and Boller, 1992).
The SERVPERF model outperforms the SERVQUAL model in delivering more effective results, as its questionnaire is over 50% shorter, making it less tedious and more engaging for respondents Additionally, the concept of expectation in SERVQUAL can be unclear for participants.
Customer Satisfaction with car maintenance service
The tangible dimension encompasses the various material resources utilized by organizations in their operations This includes supporting equipment and the appearance of staff, both of which contribute to a memorable image for customers Additionally, clients often report positive experiences when engaging with the organization's services Consequently, the tangible aspect plays a crucial role in meeting the growing expectations of employees to respond promptly to customer needs.
The quality of services provided by an organization is directly linked to the quality of the physical goods it offers to customers Therefore, we hypothesize that there is a significant correlation between these two aspects.
H1: There is a positive relationship between tangibles and customer satisfaction.
The dependability of workers is defined by their capacity and commitment to deliver services that align with the terms of the agreement, focusing on adapting performance to meet consumer expectations, including timely service and consistency (Ngaliman, 2019) In the automotive repair sector, choosing a reputable mechanic is crucial, as it not only extends the lifespan of your vehicle but also prevents unexpected breakdowns.
H2: There is a positive relationship between reliability and customer satisfaction.
Employees must respond promptly and provide information that meets customer needs Their ability to address customer concerns positively impacts customer evaluations, fostering the development of skills in service delivery Additionally, there is a link between employees' motivation to solve customer issues and the overall satisfaction of those customers (Ngaliman, 2019) Therefore, we hypothesize the following:
H3: There is a positive relationship between responsiveness and customer satisfaction.
Assurance is a key element of service quality that significantly influences customer satisfaction (Johnson, May 2018) The demonstration of learned knowledge by staff during service delivery can greatly reassure clients, fostering trust in the professionalism and ethical conduct of service providers (Khan et al., Johnson, May 2018) This trust enhances the likelihood of positive word-of-mouth, especially within financial institutions (Johnson, May 2018).
H4: There is a positive relationship between assuarance and customer satisfaction.
Faarooq et al demonstrated that enhancing the quality of personnel services can lead to significantly higher customer satisfaction The absence of empathy in service delivery contributes to ongoing client dissatisfaction, highlighting empathy's crucial role in improving customer satisfaction (Johnson, May 2018).
H5: There is a positive relationship between empathy and customer satisfaction.
In the SERVPERF model, the 22-question scale measures service performance through the above 5 aspects, using the 5-point Likert scale to measure customer expectations of the service Cronin and Taylor (1992)
The XYZ has up to date equipment
The XYZ’s physical facilities are visually appealing
XYZ 's employees are well dressed and appear neat.
The appearance of the physical facilities of XYZ is in keeping with the type of service provided
When XYZ promises to do something by a certain time, it does so.
When you have problems, XYZ is sympathetic and reassuring
XYZ provides its services at the time it promises to do so.
XYZ keeps its records accurately
XYZ does not tell its customers exactly when services will be performed. You do not receive prompt service from XYZ employees
Employees of XYZ are not always willing to help customers
Employees of XYZ are too busy to respond to customer requests promptly Assurance
You can trust employees of XYZ
You can feel safe in your transactions with XYZ 's employees
Employees of XYZ are polite
Employees get adequate support from XYZ to do their jobs well
XYZ does not give you individual attention.
Employees of XYZ do not give you personal attention.
Employees of XYZ do not know what your needs are.
XYZ does not have your best interests at heart
XYZ does not have operating hours convenient to all their customers
From the scale of the SERVPERF model, the author will come up with a set of proposed research scales, as shown in the table below.
A1 Materials associated with the scheduled maintenance service are visually appearing at Ford Car Dealerships
A2 Ford car dealership car receiving, and maintenance area has full modern, advanced machinery and easy-to-access
A3 Ford cars dealership employees are dress politely
A4 Ford car dealership waiting room area is comfortable and convenient
B1 Ford car dealership is committed to providing accurate services and completed time for customers
B2 Ford car dealership really cares and solves the questions and obstacles of customers
B3 Ford cars dealership performs the service right the first time
B4 Ford car dealership notes so that there will not be errors in the process of maintenance service
B5 Ford dealers use standard spare parts and service procedures
C1 Ford car dealership employees tell you exactly when the services will be performed
C2 Ford car dealership employees give prompt service to its customers C3 Ford car dealership employees are always willing to help you
C4 Ford car dealership employees are never too busy to respond to your request
D1 Ford car dealership services advisor have the knowledge to answer your questions
D2 The behavior of Ford car dealership employees instills confidence in you D3 You feel safe in your transactions with the Ford cars dealership
D4 Ford car dealership is fully met the requirements for car maintenance
E1 Ford car dealership employees give you individual attention.
E2 Ford car dealership employees understand your specific needs
E3 Ford car dealership offering gift and promotion for special occasion E4 Ford car dealership take care customer when coming to dealer
E5 Ford car dealership time to receive the car and complete the service is convenient and suitable with your schedule
F1 Overall, I am satisfied with the services provided by the Ford car dealership
F2 The services performed by the Ford car dealership on my car exceed my expectations
F3 The services offered by Ford car dealership are close to my ideal car services
The study utilized a self-administered survey instrument that assessed perceived service quality characteristics and customer satisfaction The survey was divided into three sections: (1) Demographics, (2) Perceived Service Quality Dimensions, and (3) Customer Satisfaction The second section included 22 items designed to evaluate various aspects of service quality, while the third section comprised three items aimed at measuring customer happiness.
Data collection and data analysis
This investigation will utilize an online questionnaire survey via Google Forms, which offers several advantages such as cost savings, time efficiency, and convenience Participants can complete the surveys at their convenience and from any location, enhancing their comfort and engagement Additionally, online surveys provide greater accessibility and scalability, making the process more effective (Aerny-Perreten, 2015).
We will utilize the email addresses and phone numbers of customers who have had their vehicles serviced at the Ford Dealership, as this information will be provided directly to us Participants will receive a survey via both email and text message If the Ford Dealership fails to supply the necessary information, we will distribute the online survey through auto forums like "Oto Saigon" and relevant Facebook groups for Ford vehicle owners.
The survey questionnaire was uploaded to a Google Form linked to the researcher's Gmail account, with a hypertext link to the survey URL included in the invitation email sent to selected participants Interested individuals could view the poll on a website before deciding to participate Once participants signed the consent form, they were granted access to complete the survey.
The collected data was organized in a Microsoft Excel spreadsheet and subsequently analyzed using IBM® SPSS version 20 Descriptive statistics were employed to present frequency distributions, means, and standard deviations, while the frequency option in SPSS helped identify any unusual or missing value patterns Additionally, inferential statistics were utilized to evaluate hypotheses regarding variable relationships and to draw conclusions from the statistical data, allowing for deeper analysis and predictions based on the observations (Mishra, 2019).
This study employed multiple linear regressions in SPSS to test hypotheses, confirming linearity through a straight line between two variables Normality was established when the data points aligned in a straight line (Meyers, 2013) Additionally, frequency distributions were generated using IBM® SPSS to visually assess the presence of homoscedasticity in the dataset.
RESEARCH RESULT
Overview of service quality in Ford Viet Nam business
4.1.1 General information of Ford Viet Nam Limited company
Founded in 1995, Ford Vietnam is a joint venture comprising 75% ownership by Ford Motor Corporation from Michigan, USA, and 25% by Song Cong Diesel Company, with an investment exceeding $126 million It holds the distinction of being the first American company to invest in Vietnam following the normalization of diplomatic relations between the two nations.
Ford operates in Vietnam through car assembly, marketing, sales, and customer care, supported by two representative offices in Hanoi and Ho Chi Minh City In Ho Chi Minh City, Ford has an assembly plant in Hai Duong, which is 55 km from Hanoi, with an annual production capacity of 14,000 vehicles.
Ford Vietnam employs approximately 700 staff at its headquarters in Hanoi and Ho Chi Minh City, along with a factory in Hai Duong Additionally, the company has over 5,000 employees across its network of authorized dealers and service centers throughout the country.
Ford is dedicated to leveraging its global resources to deliver exceptional products and experiences to Vietnamese customers, including passenger cars, commercial vehicles, and pickup trucks with innovative features, modern designs, and a focus on safety, quality, and fuel efficiency In Vietnam, Ford is also committed to supporting the sustainable economic and social development of local communities.
Ford Vietnam offers a fast maintenance service utilizing specialized equipment and standardized processes, ensuring that essential maintenance steps are completed in just one hour, excluding any additional repairs This service can save customers nearly 50% of the time compared to traditional maintenance procedures, which may take up to two hours Customers enrolled in the quick service program can access maintenance at any authorized Ford dealer within six months or 10,000 km of purchasing a new vehicle, depending on which condition is met first.
1 Year, or 20,000 km (whichever comes first)
2 Years, or 40,000 km (whichever comes first)
3 Years, or 60,000 km (whichever comes first)
Comprehensive routine maintenance services include:
All routine maintenance services such as: supply air filter, lubricating oil, fuel filter, oil filter and spark plugs.
Labor for inspection & maintenance activities
At different maintenance levels, there are different job contents in different cities, but they all have to perform the following tasks::
Maintenance of the exterior of the car: including sweeping, washing, blowing dry, polishing the tires (for trucks that do not need polishing)
Technical inspection and diagnosis: including diagnosing the exterior, inspecting the joints, checking the coolant, lubricating oil, diagnosing the technical condition of the parts, components and the whole car .
Adjustment and tightening work: according to the results of technical diagnosis, adjust the working of assemblies and components according to the allowed standards, tighten threaded joints.
Regularly check and add lubricating oil and grease as per regulations, including engine oil, transmission oil, steering wheel oil, bridge oil, and grease for the transmission If the inspection reveals that the quality of the lubricating oil has significantly deteriorated, it is acceptable to replace the oil and grease Ensure that lubricating oil changes are conducted in accordance with established guidelines.
Tire work: check tire wear, check tire pressure, if necessary to inflate and change tire position.
Ensure proper maintenance of your vehicle by regularly checking and adding the appropriate fuel for your engine type, as well as maintaining coolant levels Technical maintenance and repairs should adhere to the specific advancements and regulations established by each country.
Customers can prepay for engine oil and oil filter spare parts when bringing their vehicles for maintenance at authorized Ford dealers, ensuring service by qualified technicians equipped with modern tools This approach offers cost savings compared to retail purchases and allows both new and existing customers to buy parts anytime during vehicle operation With a single payment, customers can access genuine oil and filter parts up to three times within 18 months, providing convenience and peace of mind at Ford Vietnam Authorized Dealers nationwide.
Periodic maintenance packages allow customers to pay upfront for all recommended maintenance costs by Ford, ensuring their vehicles remain in optimal condition This proactive approach helps customers avoid potential future expenses related to spare parts and labor.
In order to increase customer engagement, Ford created the Extended Warranty product, hoping to bring peace of mind and satisfaction to customers.
Economic package: Provide extended warranty service for over 29 important spare parts / groups of spare parts related to vehicle operation including engine, transmission, active bridge system.
Peace of mind package: Provide extended warranty service for more than 1000 parts/part groups similar to the standard warranty
Cost of repair and replacement of defective genuine parts determined by the manufacturer's fault
Labor for the above-mentioned repair and replacement activities
When buying an extended warranty for your vehicle, you receive coverage for either 1 year/20,000 km or 2 years/40,000 km, depending on which limit is reached first, immediately after the standard warranty expires For Transit vehicles, the extended warranty offers a more generous coverage period of 1 year/100,000 km or 2 years/100,000 km, whichever comes first, starting right after the standard warranty period ends.
Batteries are products that meet Ford's design and technical standards, manufactured using modern techniques and rigorously quality checked by a Q1 certified manufacturer These batteries are directly tested and utilized by Ford at the Hai Duong assembly plant (Ford, 2021a).
Brake pads are specifically engineered for Ford vehicles, made from high-quality, heat-resistant materials that meet rigorous Ford standards Additionally, Ford Motorcraft oil is a mineral-based engine oil that has received global approval from Ford after extensive testing.
Step 0 : Pro-active customer contact
The primary goal is to ensure that new customers have a comprehensive understanding of our services, processes, and facilities By fostering trust and loyalty, we aim to boost our business numbers Our commitment to building strong relationships and prioritizing customer care will enhance long-term satisfaction and engagement.
Processes: introducing new and proactive customers, after-sales and after-service care.
The primary goal is to ensure that customers receive prompt and comprehensive attention from service consultants without any waiting time By distributing work evenly throughout the day, the agency can dedicate more time to each client, leading to improved outcomes and enhanced technical efficiency The process involves scheduling appointments for all customer interactions, where service staff express gratitude and allocate sufficient parking space for each client Appointments are organized using a detailed form that captures customer information and is sent to service advisors for pre-appointment confirmation.
The primary goal is to foster trust and loyalty through a complimentary vehicle inspection that assesses the condition and performance of the vehicle Customers are guided throughout the process, ultimately making the final decisions themselves Building engagement and trust relies heavily on meaningful interactions, which also present opportunities to increase sales of spare parts and services while minimizing errors.
Demographic
The questionnaire included a demographics section that gathered information from participants regarding their age, gender, total household income, years of car ownership, and frequency of dealership vehicle servicing This data was essential for characterizing the study sample Subsequent sections will provide a detailed explanation and analysis of each demographic factor.
In a recent study, only 8% of participants were female, while a significant 92% were male The sample consisted of individuals who randomly had their vehicles serviced at a Ford dealership Ford vehicles in Vietnam are typically designed with a robust and aggressive aesthetic, which tends to attract a predominantly male audience, resulting in a notably lower percentage of female customers compared to their male counterparts, as illustrated by the accompanying pie chart.
Source: Processed from author's data
Understanding the ages of participants is crucial for interpreting the results, as different age groups have distinct needs and expectations regarding service quality To maintain anonymity, age data were categorized into ranges: 25 to 35 years, 36 to 45 years, 46 to 55 years, and 57 years and older Notably, 35.28% of respondents fall within the 36 to 45 age range, while those aged 46 to 55 represent 27.58% of the total This demographic insight aligns with the observation that Ford's offerings are perceived as superior to competitors.
46-55 years old Higher than 56 years old
Source: Processed from author's data
The chart indicates that the majority of respondents, accounting for 35.78%, have a total income ranging from 15 million to under 50 million Following closely, 32.3% of respondents report an income exceeding 50 million.
Hi gh er th an 5 0, 00 0, 00 0
Source: Processed from author's data
According to the survey results, 16.4% of participants have taken their cars for maintenance at the dealership at least once, while a significant 73.6% have attended more than two service appointments Figure 13 illustrates a comparison of respondents from both groups included in the sample.
One services visit More than one services visit
Figure 4-13: Number of services visit
Source: Processed from author's data
Length of car owner ship
Figure 14 illustrates the duration of automobile ownership among respondents, revealing that 22.5% maintained their vehicles for less than one year, 35.0% for a period of 1 to 3 years, and 42.4% for more than 3 years.
Less than one year 1-3 years 4-5 years Higher than 5 years
Figure 4-14: Lenght of car ownership
Source: Processed from author's data
Reliability analysis
The Cronbach Alpha coefficient will be utilized to assess the reliability of the scale after data collection is complete, ensuring the accuracy and integrity of the data This method will evaluate the interconnection of variables within a group, allowing for the identification and removal of inaccurate variables Typically, the Cronbach Alpha coefficient will serve as the criterion for scale selection, with acceptable values ranging from 0.6 to 1.0.
On the other hand, we will not take into account any variables that have a total correlation that is lower than 0.3(Nunnally and Bernstein, 1994).
Table 4-2: Items internal consistency Cronbach’s Alpha measurements
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Cronbach's Alpha if Item Deleted
Source: Processed from author's data
The table indicates that all scales exhibit Cronbach's Alpha coefficients exceeding 0.6, while the correlation coefficients for the sum of the measurement variables across the five scales are greater than 0.3 This demonstrates the reliability of the variables, suggesting that the data is not significantly biased or erroneous Consequently, all variables are deemed suitable for the subsequent factor analysis.
The Tangible variable demonstrates a strong reliability with a Cronbach's alpha of 0.876, indicating consistency among its components All correlation coefficients exceed the standard threshold of 0.3, with the lowest being 0.645 for component A1 Consequently, these component measures were utilized in the subsequent Exploratory Factor Analysis (EFA).
The Reliability component of the service demonstrates a strong Cronbach's alpha of 0.869, indicating high internal consistency All correlation coefficients among the components exceed the standard threshold of 0.3, with the lowest being 0.586 (B4) Consequently, these component measures were utilized in the subsequent Exploratory Factor Analysis (EFA).
The Responsiveness component demonstrates a strong reliability with a Cronbach's alpha of 0.833 All correlation coefficients for these components exceed the standard threshold of 0.3, with the lowest being 0.563 (C3) Consequently, these component measures were utilized in the subsequent Exploratory Factor Analysis (EFA).
The Assurance component demonstrates a strong reliability with a Cronbach's alpha of 0.889, and all correlation coefficients exceed the standard threshold of 0.3, with the lowest being 0.669 (D3) Consequently, these component measures were utilized in the subsequent Exploratory Factor Analysis (EFA).
The Empathy component demonstrates a Cronbach's alpha of 0.801, indicating good internal consistency All correlation coefficients among the components exceed the standard threshold of 0.3, with the lowest being 0.476 (E2) Consequently, these component measures were utilized in the subsequent Exploratory Factor Analysis (EFA).
The customer satisfaction component has Cronbach's alpha of 0.760 The smallest is0.553 (F2) Therefore, these component measures are all used in the subsequent EFA analysis.
Descriptive statistic
N Range Minimum Maximum Mean Std.
Source: Processed from author's data
The average score for the Tangible dimension of service quality at Ford car dealerships is notably high, with a mean of 3.7576 and a standard deviation of 0.67110 This is followed by Reliability, which has a mean of 3.6964 and a standard deviation of 0.7373, and Responsiveness, with a mean of 3.6455 and a standard deviation of 0.73 These results suggest that the aftersales departments excel in customer handling, equipped with modern tools and skilled technicians Conversely, the Assurance and Empathy dimensions ranked lower, with means of 3.6386 and 3.5964, respectively.
The analysis of the collected data reveals that customers of Ford dealerships are generally satisfied with the aftersales department services, evidenced by a mean score of 3.6697 (SD = 0.74261) Furthermore, as shown in Table 11, all service quality dimensions have mean scores exceeding 3.5, indicating that Ford car dealerships in Vietnam deliver high-quality aftersales services to their customers.
Figure 4-15: The average rating of the observed variables in the Tangible scale
Source: Processed from author's data
The Ford car dealership's receiving and maintenance area scored the highest at 4.15, reflecting its modern and advanced machinery that is easily accessible In contrast, the availability of materials such as price lists and detailed maintenance information received a lower score of 3.65, yet this is still considered a good rating During visits to the two largest dealers in Hanoi, Ha Noi Ford and Thang Long Ford, these scores were found to be quite reasonable Ha Noi Ford recently relocated to a new facility at 313 Truong Chinh, recognized as one of the largest and most modern Ford dealerships in Vietnam According to an interview with the FCSD manager of Ford Vietnam, all Ford dealers adhere to the global design standards known as "Ford Signature," ensuring that customers can view the service workshop and observe how their vehicles are being serviced.
The modern machinery and equipment at the dealership instill confidence in customers regarding service quality However, the waiting room lacks adequate visibility for important information about cars and dealer services, as it is poorly arranged in hard-to-see locations For example, when seeking details about the new warranty extension program, I had to ask the staff instead of finding the information on posters in the waiting area.
Figure 4-16: The average rating of the observed variables in the Reliability scale Source: Processed from author's data
The average satisfaction level for the tangible variable at Ford dealers is 3.6964, indicating moderate customer satisfaction This suggests that timely delivery of vehicles, accurate diagnostics, and precise repair cost estimates are crucial for enhancing customer satisfaction Therefore, investing in well-trained and skilled staff can significantly improve customer experiences at car dealerships.
Ford dealers prioritize the use of standard spare parts and service procedures, achieving a high satisfaction score of 4.08, while the statement regarding performing services correctly the first time received a lower score of 3.58 Ford Vietnam is heavily investing in enhancing customer experience by utilizing genuine Ford parts, ensuring each vehicle offers a unique experience and instilling confidence in product quality and origin Scheduled maintenance services include original spare parts such as batteries, brake pads, and Motorcraft oils, all of which are rigorously tested and approved by Ford However, some weaker dealers in the network still struggle with maintenance quality, leading to inconsistent service experiences and longer wait times for customers.
Figure 4-17: The average rating of the observed variables in the Responsiveness scale Source: Processed from author's data
The average score of 3.6455 reflects a high level of customer satisfaction with the responsiveness at the Ha Noi Ford dealer This supports the idea that effective communication regarding vehicle status during repairs, timely responses to inquiries, and transparency about necessary additional repairs significantly enhance customer satisfaction at the dealership.
The fourth level of customer satisfaction emphasizes the importance of service employees' skills in professionally welcoming and responding to customer phone calls, as well as the capability of service advisors to promptly resolve customer issues and complaints.
Ford car dealership employees consistently prioritize customer requests, achieving a high satisfaction score of 3.67 for responsiveness However, they received a lower score of 3.61 for providing precise timelines on service completion While the staff is generally friendly and helpful, the reliability of service advisors has impacted their responsiveness, as they often struggle to provide exact answers regarding service completion times Additionally, the data highlights a weakness in the service advisor team’s ability to promptly address customer issues and complaints.
Figure 4-18: The average rating of the observed variables in the Assurance scale Source: Processed from author's data
The average satisfaction score for customers at the Ha Noi Ford dealer is 3.6386, reflecting a positive perception of the assurance variable Customers highly appreciate the courteousness of service center employees, their knowledge, reasonable pricing, and clear explanations.
The evaluation of FORD car dealership employees reveals that their knowledge is rated highly at 3.69, while their ability to instill confidence scores lower at 3.59 This indicates a solid level of training quality at Ford dealerships, attributed to significant improvements in personnel training by Ford Vietnam The Ford Academy conducts weekly training sessions to enhance employees' knowledge of products, service procedures, and emergency situations Additionally, the recruitment process has been refined to meet the high demand for staff following the dealership's relocation However, customer confidence remains just above average, likely due to higher component prices compared to independent garages and inconsistent service times, which may lead to feelings of insecurity regarding the dealership's service quality.
Figure 4-19: The average rating of the observed variables in the Empathy scale
Source: Processed from author's data
The average satisfaction score for customers at the Ha Noi Ford dealer is 3.85, reflecting a positive perception of the assurance variable To enhance customer satisfaction further, it is beneficial to foster a personal connection between customers and service advisers, along with conducting follow-up calls after service repairs.
Ford Vietnam's car dealership excels in convenience, scoring 3.88 for service timing that aligns with customer schedules, while understanding specific customer needs scored lower at 3.38 To enhance customer experience, Ford Vietnam offers online appointment scheduling through its website, allowing clients to choose their preferred service agent and easily modify or cancel appointments The introduction of a "60-minute express service" for maintenance and a home delivery program for vehicle pick-up and drop-off further streamline the process Additionally, the dealership's "Sunday services" initiative, which provides gifts and promotions, scored 3.64, yet customer satisfaction regarding personalized service remains low, indicating a need for better utilization of customer data by service advisors.
Explore Factor Analysis
EFA factor analysis was employed to condense and summarize the data by identifying underlying factors from the original variables This method groups these factors into larger, correlated variables To effectively utilize factor analysis, certain conditions must typically be satisfied.
KMO coefficient (Kaiser-Mayer-Olkin): assesses the suitability of EFA and must be at least 0.5 or higher (Hair et al., 2006)-
Bartlett's test of sphericity is a statistical method used to assess the hypothesis of correlation among variables within a population If the significance level (Sig) is less than or equal to 0.05, it indicates that the observed variables are correlated Conversely, a Sig greater than 0.05 suggests that the variables are not correlated in the population (Hair et al., 2006).
Factor loading represents the coefficient that reflects the correlation between variables and factors As noted by Hair et al (1998), it serves as a criterion for determining the practical significance level in Exploratory Factor Analysis (EFA) A factor loading of 0.5 or higher is deemed to meet this significance threshold Consequently, in this research, which involves a sample size of 224, any variables with factor loading coefficients below 0.5 will be excluded from the analysis.
Variance Explained Criteria: the total variance extracted must be greater than
Eigenvalue index: represents the amount of variation explained by the factor.
Only factors with Eigenvalue >1 are retained in the analytical model (Gerbing & Anderson, 1998).
4.5.1 Factor analysis for independent variables
Table 4-4: KMO and Bartlett's Test result
Source: Processed from author's data
KMO coefficient = 0.833>0.5, Bartlett's Sig test value = 0.000>0.5 so EFA analysis makes sense.
Table 4-5: Total Variance Explained result
Extraction Sums of Squared Loadings
Rotation Sums of Squared Loadings Total
Extraction Method: Principal Component Analysis.
Source: Processed from author's data
There are 5 groups of extracted factors with data stops of 1,248 (greater than 1) with a variance of 63,594 %>50% Thus, from 22 observed variables, 5 meaningful groups are extracted.
Table 4-6: Rotated component matrix result
Extraction Method: Principal Component Analysis
Rotation Method: Varimax with Kaiser Normalization. a Rotation converged in 6 iterations.
All 22 observed variables have factor loading coefficients greater than 0.5, so they should be kept in the research model From the results of the factor rotation matrix, there are 5 groups of factors extracted with the observed variables as follows:
Group 1 includes variables: B5, B3, B2, B1, B4 belonging to the scale of Reliability.Group 2 includes variables: D1, D3, D4, D2 Belongs to the scale of Assurance Group 3 includes variables; C2, C3, C1, C4, E4 Although E4 is loaded into the Responsiveness scale group, the impact level has not changed much, so this group is still namedResponsiveness Group 4 includes variables: A2, A4, A3, A1 Belongs to that ladder about Tangible Group 5 includes variables: E5, E3, E2, E1 This group belongs to the Empathy scale.
The EFA analysis results indicate that the Tangible, Assurance, and Reliability scales remain unchanged in their observed variables However, the Responsiveness scale introduces an additional observed variable, E4, while the Empathy scale sees a reduction with the removal of empathy4 Both scales will undergo further reliability assessment using the Cronbach's Alpha method The Responsiveness scale now comprises five observed variables: C2, C3, C1, C4, and E4, with the reliability analysis yielding specific results.
Table 4-7: Item-total statistics result
Cronbach's Alpha if Item Deleted C
Source: Processed from author's data
The scale's reliability improved significantly, with a Cronbach Alpha of 0.844 after incorporating the E4 variable Correlation analysis revealed that the relationships between E4 and the five variables (C1, C2, C3, C4, and E4) exceeded 0.3 This enhancement in the Responsiveness scale underscores the importance of including E4, ultimately leading to a more reliable measurement The final Responsiveness scale comprises five variables, as detailed in Table 4-8: Item-Total Statistics results.
Cronbach'sAlpha ifItemDeleted
Source: Processed from author's data
The Empathy scale demonstrates strong reliability, with all observed variable coefficients exhibiting variable-total correlation coefficients greater than 0.3 After excluding the E4 variable, the Cronbach's Alpha coefficient for the scale is 0.778, confirming its suitability for future research.
There are 3 observed variables HL1, HL2, HL3 included in EFA analysis to measure the convergence of the data The results of the analysis are as follows:
Table 4-9: KMO and Bartlett's Test result
KMO coefficient = 0.682>0.5, Bartlett's Sig test value = 0.000>0.5 so meaningful EFA analysis
Table 4-10: Total variance explained result
Extraction Sums of Squared Loadings Total % of
From 3 observed variables, a single factor is extracted with the data point is 2,028 (greater than 1) with variance extracted by 67.609%>50%.
Table 4-11: Rotated Component Matrix result
Adjustment of model after EFA analysis
The original research model includes 22 observed variables across five scales: Reliability, Assurance, Responsiveness, Tangible, and Empathy, along with three variables measuring Satisfaction with service quality Analysis using Cronbach's Alpha and Exploratory Factor Analysis (EFA) confirms the integrity of the proposed scales, with E4 being included in the Responsiveness scale and excluded from the Empathy scale.
Customer Satisfaction with car maintenance service
Hypothesis testing
Prior to conducting regression analysis, correlation analysis is performed to evaluate the relationships between independent variables and the dependent variable This analysis helps determine the strength and significance of these correlations, indicating whether they are high or low.
Table 4-12: Pearson correlation for service quality dimensions, customer satisfaction
Reliability Tangible Responsiveness Empathy Assurance Customer
Source: Processed from author's data
The analysis indicates that there is no significant correlation between the independent variables, as evidenced by a significance level of Sig < 0.05 Furthermore, the correlation coefficient reveals a relationship between "customer satisfaction" and the independent variables "Tangible," "Responsiveness," and "Reliability."
There is a significant positive correlation between "Assurance" and "Empathy," with each variable achieving a significance level of less than 0.05 Therefore, at the 95% confidence level, the relationship between these independent variables and "customer satisfaction" is noteworthy.
Table 4-14: Summary result from regression analysis
1 834 a 696 681 41928 696 47.585 5 104 000 a Predictors: (Constant), Tangible, Reliability, Assurance, Responsiveness, Empathy
The initial model demonstrated that 68.1% of the variance in Customer Satisfaction could be explained, significantly reflecting the impact of five dimensions of Service Quality on Customer Satisfaction (Adjusted R square = 0.681) Additionally, the variance inflation factor (VIF) for model 1 was below 10,000, indicating the absence of multicollinearity.
The variance inflation factor (VIF) for the independent variables in the regression model ranges from 1.438 to 1.956, indicating that the tolerance value is less than 1 This suggests that multicollinearity is not present in the regression equation, confirming that the hypothesis of multicollinearity is negligible.
The statistical analysis reveals that both the regression coefficients B and Beta are greater than 0, with a significance level of Sig.